Issue of debenture

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2014 One of our client who is a private limited company wants to raise funds through unsecured debentures/ deposit from public.

What are the rule regulation for the same.?
Can Unsecured Non Convertible Debentures be issued?

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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09 April 2014 The very definition of a private limited company - Section 2(68) prohibits invitation to the public to subscribe for any securities of the Company. Moreover, Section 76 on acceptance of deposits from public by certain companies also does not cover private companies. Hence private limited company cannot raise funds from the public.