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Section 76 of the Companies Act 2013: Acceptance of Deposits from Public by Certain Companies

SECTION-76 (Acceptance of Deposits from Public by Certain Companies) under CHAPTER-V (Acceptance of Deposits by Companies) of the Companies Act, 2013

(1) Notwithstanding anything contained in section 73, a public company, having such net worth or turnover as may be prescribed, may accept deposits from persons other than its members subject to compliance with the requirements provided in sub-section (2) of section 73 and subject to such rules as the Central Government may, in consultation with the Reserve Bank of India, prescribe:

Provided that such a company shall be required to obtain the rating (including its networth, liquidity and ability to pay its deposits on due date) from a recognised credit rating agency for informing the public the rating given to the company at the time of invitation of deposits from the public which ensures adequate safety and the rating shall be obtained for every year during the tenure of deposits:

Provided further that every company accepting secured deposits from the public shall within thirty days of such acceptance, create a charge on its assets of an amount not less than the amount of deposits accepted in favour of the deposit holders in accordance with such rules as may be prescribed.

(2) The provisions of this Chapter shall, mutatis mutandis, apply to the acceptance of deposits from public under this section.

Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 76 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April 2014) - link

(3) Further, refer the following rule(s) of the Companies (Acceptance of Deposits) Rules, 2014 - link
  • For sub-section (1) of section 76:- refer definition of "eligible company" in Rule 2;
  • For 2nd proviso of sub-section (1) of section 76:- refer Rule 6 - Creation of Security.
[Note: please also check further amendments to the Companies (Acceptance of Deposits) Rules, 2014]

This page was last updated on 28th February, 2017.

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