Depositsnot to be invited without issuing an advertisement.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....used to be invited in accordance with the rules made under sub-section (1), [3][* * *]      (b) an advertisement,[4] including therein a statement showing the financial position of the company, has been issued by the company in such form and in such manner as may be prescribed [5][, and] [6][     (c) the company is not in default in the repayment of any deposit or part thereof and any interest thereupon in accordance with the terms and conditions of such deposit.] [7][(3)     (a) Every deposit accepted by a company at any time before the commencement of the Companies (Amendment) Act, 1974 (14 of 1974) in accordance with the directions made by the Reserve Bank of India under Chap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... such deposit shall be made by the company within thirty days from the date of acceptance of such deposit or within such further time, not exceeding thirty days, as the Central Government may, on sufficient cause being shown by the company, allow. (5) Where a company omits or fails to make repayment of a deposit in accordance with the provisions of clause (c) of sub-section (3), or in the case of a deposit referred to in sub-section (4), within the time specified in that sub-section,      (a) the company shall be punishable with fine which shall not be less than twice the amount in relation to which the repayment of the deposit has not been made, and out of the fine, if realised, an amount equal to the amount in relati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....liable to fine. (7)(a) Nothing contained in this section shall apply to,__      (i) a banking company, or      (ii) such other company as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf.      (b) Except the provisions relating to advertisement contained in clause (b) of sub-section (2),[12] nothing in this section shall apply to such classes of financial companies as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf.[13] [14][(8) [15]The Central Government may, if it considers it necessary for avoiding any hardship or for any other just and sufficient reason, by order, iss....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....liable to a fine of [23][not less than rupees five hundred] for every day during which such non-compliance continues.] [24][(11) A depositor may, at any time, make a nomination[25] and the provisions of sections 109A and 109B shall, as far as may be, apply to the nomination made under this sub-section.] Explanation. For the purposes of this section, "deposit" means any deposit of money with, and includes any amount borrowed by, a company but shall not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India.                       --------------------------------- Notes:- [1] Inserted by Companies (Amendment) Act, 1974, 41 of 1....