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Acceptance of public deposits

niraj (Propreitor) (31 Points)

25 June 2010

An individual is running a gold jewellery business under " proprietorship" and also has Bombay Money-lender's license on his own name.

1. Can this Individual accept "Public Deposits in Cash/Cheque/DD " by doing public advertisements , for business purposes ?

2. Can this Individual accept " Public Deposits in the form of Gold " by doing public advertisements , for business purposes?

Kindly support your answer with government article..

Thanks

Niraj

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5 Replies

janak (post graduation) (1327 Points)
Replied 25 June 2010

as far as ,i think..........he can not accept the public deposit

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niraj (Propreitor) (31 Points)
Replied 25 June 2010

Thanks, but can you support your view with a government law or article/ RBI guidelines under which it is specified

janak (post graduation) (1327 Points)
Replied 25 June 2010

i replied iton the basic of company law

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 25 June 2010

1. Can this Individual accept "Public Deposits in Cash/Cheque/DD " by doing public advertisements , for business purposes ? why not . Because since he is having a license in mumbai i think he can do so

any way comments of senior members are awaited.

2. i am not aware of this concept.

niraj (Propreitor) (31 Points)
Replied 25 June 2010

Thanks for revert, kindly note this.

@ Janak : Under company law it is not allowed to accept company deposits, but I am propreitor so I dont come under the purview of company law

@ Sivasiva : as you replied many of the top CA in pune/mumbai said the same , but sir no one is responding with legal or written record for the same. Can you specify any law or government rule under which it is specified.