Public deposit eligibility updated: companies below prescribed net owned fund cannot solicit deposits; penal interest applies for overdue deposits. Amendment defines net owned fund by reference to the Reserve Bank of India Act and prohibits companies below the prescribed net owned fund threshold from inviting public deposits. It also adds a penal interest regime for overdue public deposits, applying a higher compoundable annual penal rate to deposits made by small depositors, and directs commencement upon publication in the Official Gazette.
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.
Public deposit eligibility updated: companies below prescribed net owned fund cannot solicit deposits; penal interest applies for overdue deposits.
Amendment defines net owned fund by reference to the Reserve Bank of India Act and prohibits companies below the prescribed net owned fund threshold from inviting public deposits. It also adds a penal interest regime for overdue public deposits, applying a higher compoundable annual penal rate to deposits made by small depositors, and directs commencement upon publication in the Official Gazette.
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