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4. Non-applicability of the directions to certain types of deposits of money

Nothing contained in paragraphs 5 to 1[9B] and 13 of these directions shall apply to the following types of deposits received by a miscellaneous non-banking company, namely:-

i) Any money received or collected under a transaction or arrangement referred to in sub-paragraph (2) of paragraph 2;

ii) any money received from the Central Government or a State Government or any money received from any other source and the repayment of which is guaranteed by the Central Government or a State Government or any money received from a local authority or a foreign Government or any other foreign citizens, authority or person;

iii) any money received from a banking company or from the State Bank of India or from a banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949 (10 of 1949) or a corresponding new bank as defined in section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or from a co-operative Bank as defined in 2[Section 5 (cci) of the Banking Regulation Act, 1949 (10 of 1949)] ;

iv) any loan received from the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) or the Industrial

Credit & Investment Corporation of India Ltd., established under the Indian Companies Act, 1913 (7 of 1913) or the Industrial Finance Corporation of India established under the Industrial Finance Corporation Act, 1948 (15 of 1948) or the Industrial Reconstruction Bank of India Ltd., or the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956) or 3[the Small Industries Development Bank of India established under the Small Industries Development Bank of India Act, 1989 (39 of 1989) or] a State Financial Corporation established under the State Financial Corporation Act, 1951 (63 of 1951) or Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) or the General Insurance Corporation of India and its subsidiaries or the Tamil Nadu Industrial Investment Corporation Ltd., or the National Industrial Development Corporation of India Ltd., or the 4[SCICI Ltd,]  or the Rehabilitation Industries Corporation of India Ltd., or any Electricity Board constituted under the Electricity (Supply) Act, 1948 or the State Trading Corporation of India Ltd. or the Rural Electrification Corporation Ltd., or the Minerals and Metals Trading Corporation of India Ltd., or the Agricultural Finance Corporation Ltd., or the State Industrial and Investment Corporation of Maharashtra Ltd., or the Gujarat Industrial and Investment Corporation Ltd. or 5[the Asian Development Bank, or International Finance Corporation, or] any other financial institution wholly owned by the Central Government or a State Government or any other financial institution that may be notified by the Reserve Bank in this behalf;

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7[vii) any money received from an employee of the company by way of security deposit for due performance of his duties :

Provided that the amount of such security deposit is deposited with a scheduled bank or a post office in the joint names of the employee and the company on the conditions, that, -

(a) it shall not be withdrawn without the consent in writing of the employee; and

(b) it shall be repayable to the employee in accordance with the terms of his employment along with interest paid by bank/post office on the deposit account;]

8[viii) any money raised by issue of debentures or bonds with predetermined terms of conversion without any option given, either to the issuer or the holder for conversion of the said debentures or bonds into equity share capital;]

ix) any money received by way of subscription to any share or stock pending the allotment of such shares or stock or any money received by way of subscription todebentures or bonds of the type specified in clause (viii) of this paragraph pending the allotment of such debentures or bonds and any money received by way of calls in advance on shares in accordance with the company's articles of association so long as such money is not repayable to the shareholders under the articles of association of the company.

Note :

1. Substituted, vide Notification No. 44/ED(B)-81 dated April 15, 1981

2. Substituted, vide Notification No. DFC (COC) 65 DG(T) dated June 17, 1992

3. Inserted vide Notification No.DFC(COC) 65 DG(T)/91-92 dated June 17, 1992

4. Substituted, vide Notification No. DFC(COC) 71ED (S)/93 dated May 12, 1993

5. Inserted, vide Notification No. DFC(COC)87 ED(JRP)/96 dated July 24, 1996

6. Omitted, vide Notification No. DFC(COC) 67 ED(S)-93 dated April 10, 1993

7. Substituted vide Notification No.DFC(COC) 62 DG(J)-91 dated September 19, 1991

8. Substituted, vide Notification No.DFC(COC) 87 ED(JRP)-96 dated July 24, 1996