Who are small depositors?
Explanation. —For the purposes of this section, “a small depositor” means a depositor who has deposited in a financial year a sum not exceeding twenty thousand rupees in a company and includes his successors, nominees and legal representatives.
Are unsecured debentures treated as deposits?
However, an unsecured debenture shall only be exempt from the purview of deposits as long as it is compulsorily convertible within 10 (ten) years. This would mean that non-convertible unsecured debentures would be considered as deposits.
What is deposit as per Companies Act, 2013?
Deposit Under Companies Act, 2013
| Serial No. | Maximum Limit |
|---|---|
| 1 | 10% Paid-up share capital, free Reserves and securities premium account of the company |
| 2 | 25% Paid-up share capital, free Reserves and securities premium account of the company |
| 3 | 35% of Paid-up share capital, free Reserves and securities premium account |
What is the minimum period of fixed deposit?
Tenure of FD Usually, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years. You can choose the period for which you wish to keep your FD as per your requirement.
Which companies can accept deposit from public?
Solution. Eligible public Company and Government Companies can accept deposits from the public.
Can a company issue unsecured debentures?
Yes. The company can issue secured and unsecured debentures. But they have to get the approval of shareholders in a general meeting by passing a special resolution.
When debentures are considered as deposits?
Both Sub-clause IX and IXA contain the provisions related to Bonds and debentures. Only the following types of debentures will not be considered as deposits. However, these tangible assets should be the assets specified under Schedule III of the Companies Act, 2013. Intangible assets cannot be used as security.
Can Section 8 accept deposits?
A Section 8 Company cannot do: Cannot take deposits from general public.
How much deposit can a company hold?
An eligible company can accept deposits from public only to the extent of 25% of its paid-up capital and free reserve and securities premium account.