Company deposit regulation: prescribed rules and mandatory financial-advertisement requirement govern invitations and repayment obligations. Central Government, with the Reserve Bank of India, may prescribe limits, manner and conditions for companies to invite or accept deposits. Companies must comply with those rules, issue a prescribed advertisement disclosing financial position, and not be in default on repayment or interest. Deposits taken in contravention must be repaid within short prescribed periods or as extended; prior deposits follow specified repayment and renewal conditions. Non-compliance exposes companies and defaulting officers to fines, imprisonment and Tribunal-ordered repayment measures. Exemptions and nomination rights are provided and 'deposit' is broadly defined subject to prescribed exclusions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Company deposit regulation: prescribed rules and mandatory financial-advertisement requirement govern invitations and repayment obligations.
Central Government, with the Reserve Bank of India, may prescribe limits, manner and conditions for companies to invite or accept deposits. Companies must comply with those rules, issue a prescribed advertisement disclosing financial position, and not be in default on repayment or interest. Deposits taken in contravention must be repaid within short prescribed periods or as extended; prior deposits follow specified repayment and renewal conditions. Non-compliance exposes companies and defaulting officers to fines, imprisonment and Tribunal-ordered repayment measures. Exemptions and nomination rights are provided and "deposit" is broadly defined subject to prescribed exclusions.
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