Deposit acceptance limits restrict companies from taking deposits outside prescribed tenors and capped aggregates and rates. Companies are generally prohibited from accepting or renewing deposits outside prescribed minimum and maximum tenors, except under a limited short term exception subject to a cap relative to paid up share capital and free reserves and a minimum repayable period; companies in default cannot accept further deposits. Aggregate ceilings restrict acceptance of certain deposit categories against unsecured debentures, shareholder or director guaranteed deposits, with distinct limits for non government and government companies, and transitional provisions require reduction of pre existing excess deposits; certain balance sheet deductions apply when computing capital and reserves.
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Provisions expressly mentioned in the judgment/order text.
Deposit acceptance limits restrict companies from taking deposits outside prescribed tenors and capped aggregates and rates.
Companies are generally prohibited from accepting or renewing deposits outside prescribed minimum and maximum tenors, except under a limited short term exception subject to a cap relative to paid up share capital and free reserves and a minimum repayable period; companies in default cannot accept further deposits. Aggregate ceilings restrict acceptance of certain deposit categories against unsecured debentures, shareholder or director guaranteed deposits, with distinct limits for non government and government companies, and transitional provisions require reduction of pre existing excess deposits; certain balance sheet deductions apply when computing capital and reserves.
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