Can a Pvt.Ltd Company accept I.C.D ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2011
Dear All,

Can a private company accept Inter Corporate Deposit (I.C.D) from public or from its promoter company?

Suppose X Pvt.Ltd., is promoted by Y Ltd., and Z Ltd.,. in this situation, can X Pvt. Ltd accept I.C.D from its promoter companies Y Ltd.& Z Ltd. ?

Kindly advise,

Thanks you in advance.
Swamykar

CS Taher

CS Taher (Expert)
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20 January 2011 Yes a private company can accept inter-corporate deposit from its promoters by way of unsecured loans..

But any company cannot accept deposit from public if its net capital is below Rs.1 crore(Acceptance of Deposit Rules 1975,inserted by third amendment rules 2001)

Jayashree S Iyer

Jayashree S Iyer (Expert)
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20 January 2011 X Ltd. can accept ICD from Y Ltd. and Z Ltd.

However accepting deposits from public is subject to Section 58A of the Companies Act, 1956 and Acceptance of Deposit Rules, 1975.

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CS Taher

CS Taher (Expert)
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20 January 2011 Agree with Expert

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2011 Thank you all experts,
In other way,

X_Private Limited (promoted by Y Ltd& Z Ltd)can accept I.C.D from A_Limited, which is promoted by Y_Ltd. & Z_Ltd.?

Once again thanking you...

CS Taher

CS Taher (Expert)
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20 January 2011 There is no restriction for inter corporate Deposits...

Jayashree S Iyer

Jayashree S Iyer (Expert)
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20 January 2011 Taher, rightly said.