The Companies Act, 2016 under Chapter – V provides for Acceptance of Deposits by Companies. Under Chapter V the Act provides for the provisions where a company is prohibited and on what grounds a company is provided prohibitions on accepatance of deposits from public, repayment of such deposits if made by such company before the commencement of the law, damages in cases of fraud and acceptance of deposits from public on how can be made by which companies. Section 73 of the Companies Act, 2013 provides for provisions of regulating acceptance of public deposits. The major goal behind the proviosion of section 73 is to protect the interests of investors and ensure financial stability. Under the provisions of this section it is provided that companies must comply with certain rules and regulations when accepting deposits from the public. The essentils and its understanding that are provided under section 73 is important for both businesses and stakeholders to ensure compliance and avoid legal consequences. Section 73 provides a prohibition upon the companies to accept any deposits but U/S – 73 (1) it is mentioned that the section shall not apply to any company or establishment which is a banking company and a non-banking financial company (NBFC) and shall also not apply to such other company as the Central Government may, after consultation with the Reserve Bank of India (RBI), specify in this behalf.

Find Exactly What You Need :

• Acceptance of Deposits by Companies