limitation for unsecured loan

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Piyush Jindal (Querist)
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04 April 2009 Is there any limitation for public company to raise unsecured loan. Like company is loan from an individual.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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05 April 2009 A public company can raise unsecured loans in the form of Public Deposits. Section 58A of the companies act deals with acceptance of public deposits and rules, regulaations and procedures are given by RBI. After complying with RBI procedures and adherence to 58A of the Companies act you can raise unsecured loans.