27 January 2009
Who can accept Public Deposits ? Where can I find complete procedure and formats for inviting public deposits by a public limited company(manufacturing)
A public limited co can accept public deposits. But a pvt co cant bcz of the restriction in the Articles(Sec 3(1)(iii)(d)).
U can see the Companies(Acceptance of Deposit)Rules 1975 for the procedure.
It is to be noted that the proposed Companies Bill 2008 does not allow acceptance of deposits. It is a setback for the corporates as the PUBLIC DEPOSIT is one of the easy and cheapest way of finance.
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