Sec 58A Acceptance of Public Deposits

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Rishi Vyas (Querist)
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27 January 2009 Who can accept Public Deposits ? Where can I find complete procedure and formats for inviting public deposits by a public limited company(manufacturing)

CS Vivek Hegde

CS Vivek Hegde (Expert)
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27 January 2009 Rishi

A public limited co can accept public deposits. But a pvt co cant bcz of the restriction in the Articles(Sec 3(1)(iii)(d)).

U can see the Companies(Acceptance of Deposit)Rules 1975 for the procedure.

It is to be noted that the proposed Companies Bill 2008 does not allow acceptance of deposits. It is a setback for the corporates as the PUBLIC DEPOSIT is one of the easy and cheapest way of finance.

Rishi Vyas

Rishi Vyas (Querist)
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27 January 2009 Dear Vivek,

I have gone through the said Rules but havent found the step by step process and also the formats for Application, Advertisement, Receipt etc.

Is there any handbook for the same?

CS Vivek Hegde

CS Vivek Hegde (Expert)
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28 January 2009 If u want detailed procedure u can refer COMPANY LAW PROCEDURE by TAXMANN...

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