Can a Pvt.Ltd Company accept I.C.D ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2011
Dear All,

Can a private company accept Inter Corporate Deposit (I.C.D) from public or from its promoter company?

Suppose X Pvt.Ltd., is promoted by Y Ltd., and Z Ltd.,. in this situation, can X Pvt. Ltd accept I.C.D from its promoter companies Y Ltd.& Z Ltd. ?

Kindly advise,

Thanks you in advance.
Swamykar

CS Taher

CS Taher (Expert)
Follow

20 January 2011 Yes a private company can accept inter-corporate deposit from its promoters by way of unsecured loans..

But any company cannot accept deposit from public if its net capital is below Rs.1 crore(Acceptance of Deposit Rules 1975,inserted by third amendment rules 2001)

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

20 January 2011 X Ltd. can accept ICD from Y Ltd. and Z Ltd.

However accepting deposits from public is subject to Section 58A of the Companies Act, 1956 and Acceptance of Deposit Rules, 1975.

CS Taher

CS Taher (Expert)
Follow

20 January 2011 Agree with Expert

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2011 Thank you all experts,
In other way,

X_Private Limited (promoted by Y Ltd& Z Ltd)can accept I.C.D from A_Limited, which is promoted by Y_Ltd. & Z_Ltd.?

Once again thanking you...

CS Taher

CS Taher (Expert)
Follow

20 January 2011 There is no restriction for inter corporate Deposits...

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

20 January 2011 Taher, rightly said.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Leena Rachh

Govind Mundada

svgovindaraju

venkanna setty

YARRAMREDDY M

Subscribe Now

Can a Pvt.Ltd Company accept I.C.D ?

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA