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        Companies Law

        Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975

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        Invitation to deposit requires a valid advertisement; renewal or maturity notices constitute invitations and trigger compliance. An intimation to a depositor on the eve of maturity indicating the maturity date and stating the depositor may renew is treated as an invitation to accept deposits and therefore requires the company to have a valid advertisement in force complying with the Companies (Acceptance of Deposits) Rules, 1975 before issuing such communication.
                          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.

                                Invitation to deposit requires a valid advertisement; renewal or maturity notices constitute invitations and trigger compliance.

                                An intimation to a depositor on the eve of maturity indicating the maturity date and stating the depositor may renew is treated as an invitation to accept deposits and therefore requires the company to have a valid advertisement in force complying with the Companies (Acceptance of Deposits) Rules, 1975 before issuing such communication.


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