Fixed deposit u/s 372a

Loan to any other body corporate including deposits is covered under the provisions of Sec 372A

However deposits with a banking company (bank) is not covered under 372A

As per my view 372A does not cover any deposit. It is for inter corporate loan and investment in securities of the company.

Originally posted by : CA.HARSHIT KHATRI
	Loan to any other body corporate including deposits is covered under the provisions of Sec 372A

Will it cover deposit also ? pls confirm

No, as far as my knowledge is concerned.

Sec 372A - Inter-corporate loans and investments.

(1) No company shall, directly or indirectly,-

• (a) make any loan to any other body corporate:

  (b) give any guarantee, or provide security, in connection with a loan made by any other person to , or to any other person, by any body corporate: and

  (c) acquire by way of subscripttion, purchase or otherwise the securities of any other body corporate,

Pls take a note INDIRECT loan is also coverd therefore ,deposits will be conted under the previw of the said sec...