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Acceptance of public deposits

niraj (Propreitor) (31 Points)

25 June 2010

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

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5 Replies

janak (post graduation) (1327 Points)
Replied 25 June 2010

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

niraj (Propreitor) (31 Points)
Replied 25 June 2010

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

janak (post graduation) (1327 Points)
Replied 25 June 2010

i replied iton the basic of company law

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 25 June 2010

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.

niraj (Propreitor) (31 Points)
Replied 25 June 2010

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.