Does a Pvt. company can accept or renew deposits for a period less than 6 months ?
ASSUMING:
1. such deposit shall not exceed 10 & of
aggregate of paid up share cap , free
reserve & SPR
2. such deposits shall b payable not
earlier 3 months
As per Rule 3 of Companies Acceptance of Deposits Rules, as per the general rule, a Company cannot accept the deposit which is repayable within the period of 6 months and not more than the period of 36 months.
But as per the proviso of Rule 3 , a Company for meeting its short term requirement may provide deposit but not less than the period of 3 months but provided such Companyshall not accept the deposit if such amount exceeds 10% of the paid up share capital, free reserves and securities premium
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