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Roc charge creation - required or not?

Co Act 2013 295 views 2 replies

Ashish lahoti

Chartered Accountant

112 Points Joined June 2011

Dear All,

There is X limited (unlisted Public Co.) and There is Y limited (Listed Co.)

Now bank has provided loan to X limited on pledge of shares of Y ltd hold by promotor A of X limited.

can banker create charge against loan to X limited.

Thanks

CA Ashish Lahoti

Replies (2)

Akash Makhija

56 Points Joined December 2017

I don't get it,how bank can provide a loan to company X Ltd if the investment is in name of promoter.They must have provided loan to promoter only not X ltd.

Sudhir Todkar

CS Professional

1021 Points Joined April 2017

Charger can be created only on assets of the company either tangible or in tangible in India or outside India..

In the given case bank cannot create charge on shares of A who is a promoter company is different from promoter.. kindly modified it if such charge is credited

Company can create charge on there own shares but not on others shares either fixed or floating charge.. as per bank requirements.