December 18, 2023 at 10:36 AM
Deposits are one of the options open to the company for raising funds to meet its short-term and long-term funding needs. The invitation and acceptance of deposits are governed by Section 73 to 76 of the Companies Act 2013 (hereafter referred to as the Act) and Rules adopted under Chapter V of the Companies Act, 2013. According to the Companies Act 2013, a “deposit” is any money received by a company in the form of a deposit, loan, or other forms, but does not include amounts prescribed by Rule 2(c) of the Companies (Acceptance of Deposit) Rules, 2014.
All firms are subject to the provisions of sections 73 to 76 of the Companies Act 2013 and the Companies Acceptance of Deposits Rules, 2014.
In accordance with section 73 to 76 of the Companies Act 2013, the company can receive deposits from both members and the general public.
If a company accepts, invites, allows, or causes another person to acknowledge or invite a deposit on its behalf in violation of the manner or conditions prescribed under section 73 or section 76 or rules made thereunder, or fails to repay the deposit or any part thereof, or any interest due thereon, within the time specified in section 73 or section 76 or rules made thereunder, or such additional time as the Tribunal may allow under section 73,