Companies Must Advertise Renewals as Deposits u/r 4 of the 1975 Deposit Rules.

The circular addresses the requirements under Rule 4 of the Companies (Acceptance of Deposits) Rules, 1975, concerning the advertisement necessary for inviting public deposits. It clarifies that when a company informs a depositor about the maturity of their deposit and suggests the possibility of renewal, this communication is considered an invitation to deposit. Consequently, the company must issue a valid advertisement as mandated by sub-rule (1) of Rule 4 to comply with the regulations.

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