Acceptance of public deposits

An individual is running a gold jewellery business under " proprietorship" and also has Bombay Money-lender's license on his own name.


1. Can this Individual accept "Public Deposits in Cash/Cheque/DD " by doing public advertisements , for business purposes ?

2. Can this Individual accept " Public Deposits in the form of Gold " by doing public advertisements , for business purposes?

Kindly support your answer with government article..

Thanks

Niraj

Replies (5)

as far as ,i think..........he can not accept the public deposit

Thanks, but can you support your view with a government law or article/ RBI guidelines under which it is specified
 

i replied iton the basic of company law

1. Can this Individual accept "Public Deposits in Cash/Cheque/DD " by doing public advertisements , for business purposes ?  why not .   Because since he is having a license in mumbai i think he can do so

any way comments of senior members are awaited.

2. i am not aware of this concept.

Thanks for revert, kindly note this.

@ Janak : Under company law it is not allowed to accept company deposits, but I am propreitor so I dont come under the purview of company law


@ Sivasiva : as you replied many of the top CA in pune/mumbai said the same , but sir no one is responding with legal or written record for the same. Can you specify any law or government rule under which it is specified.

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