sec 58 a of f.d.

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Hi,

I want to know under what section or rule is 15% of public deposits accepted maturing during the year is to be invested in FDs to cover the said 15%.

Replies (1)

Hello,

 

Rule 3A (Maintenance of liquid assets) of The Companies (Acceptance of Deposits) Rules, 1975 required the same.

 

Find below full rule 3A:

 

3A. Maintenance of liquid assets.—

 

(1) Every company shall, before the 30th day of April of each year, deposit or invest, as the case may be, a sum which shall not be less than fifteen per cent of the amount of its deposits maturing during the year ending on the 31st day of March next following in any one or more of the following methods, namely:

(a) in a current or other deposit account with any scheduled bank, free from charge or lien;

(b) in unencumbered securities of the Central Government or of any State Government;

(c) in unencumbered securities mentioned in clauses (a) to (d) and (ee) of section 20 of the Indian Trusts Act, 1882 (2 of 1882);

(d) in unencumbered bonds issued by the Housing Development Finance Corporation Limited, Bombay, a company incorporated under the Companies Act, 1956 (1 of 1956), and notified under clause (f) of section 20 of the Indian Trusts Act, 1882 (2 of 1882):

 

Provided that with relation to the deposits maturing during the year ending on the 31st day of March, 1979, the sum required to be deposited or invested under this sub-rule shall be deposited or invested before the 30th day of September, 1978.

 

Explanation.—For the purpose of this sub-rule, the securities referred to in clause (b) or clause (c) shall be reckoned at their market value.

 

(2) The amount deposited or invested, as the case may be, under sub-rule (1), shall not be utilised for any purpose other than for the repayment of deposits maturing during the year referred to in that sub-rule, provided that the amount remaining deposited or invested, as the case may be, shall not at any time fall below fifteen per cent of the amount of deposits maturing until the 31st day of March of that year.

 

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