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Public deposit acceptance

Others 763 views 1 replies

CS Snehal

Compliance Manager

346 Points Posted on 20 March 2010

Dear All,

Please clarify,

A public ltd company is acepting deposits from individuals and trusts.

Can it accept deposits from a private limited company.

If yes what are the documents required from the pvt company and what is the public company suuppose to do.

If no then, some document support for the same.

An early relp will be appreciated.

Thanks

Replies (1)

Rasesh

CS CWA MBA (Fin) B.Com LL.B (Spl)

6501 Points Posted on 21 March 2010

Deposits from Private Limited company would fall under the category of ICD - Inter corporate deposits and are exempt deposits as per the companies (acceptance of deposit) rules.

The company can accept ICD/deposit from private limited company. You need to obtain the following documents when the deposit is given for the first time:

1) Board Resolution - authority details required

2) MOA/AOA