Increase paid up capital

A private ltd. comp. can issue only secured debentures, under the Companies (Acceptance of Deposit) Rules, 1975 “any amount raised by issue of debentures (including convertible debentures) secured by the mortgage of any immovable property of the company and that the market value of the immovable property secured is higher than the amount of debentures issued” is not considered to be a DEPOSIT. 

2. APPROVALS:

The following approvals are required to be obtained by the Company:

Approval Level                                                                    Nature of approval

Board                                                                     For issue of Debentures under Section 292(1)(b).

Board                                                                     Creation / Declaration of Trust

Board                                                                     Appointment of Debenture Trustees (Section 117B)

Board                                                                     Approval of Draft Trust Deed

Board                                                                     Approval of the Form of Debenture Certificate.                       Letter from Trustees                                 Consent from the Debenture Trustees to act as Trustees.

No approvals are required to be obtained under Section 293(1)(a) and (d) since, the Section does not apply to Private Limited Companies, unless it is a Subsidiary of a Public Company.