Lien on Fixed deposit

This query is : Resolved 

26 November 2022 Dear sir,
We used to purchase Bank Guarantee, Letter of credit from financial institution or bank depositing 100 % margin as deposit during duration of Bank Guarantee or Letter of credit.
Bank will create lien on fixed deposits.
I need advice from expert team,
1. whether creating lien on Fixed deposit is termed as
encumbursence of asset of company.
2.whether bank is under obligation create charge @ roc/MCA

26 November 2022 1 yes, it's encumbrance of the asset of the company.
2 Deposit of a fixed deposit receipt with the Bank by way of security for a loan amount to pledge of movable property. There is required to create charge on pledge under Companies Act, 2013. Conclusion, So it need to be registered.

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