Charge creation on bank guarantee

Is it compulsory to create charge for Bank Gurantee with ROC, if not Please provide explanation.

Replies (1)

A charge is required to be registered if it is covered under any of the types mentioned in Sec.125(4) of Companies Act 1956.  In case of Bank guarantee normally counter-guarantee is given to the Bank and in that case it is not required to be registered since no charge is created on company's property.  However, if hypothecation agreement covers bank guarantee also, in that case charge will have to be filed with ROC.  Different banks follow different practice in this regard.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details