Question

Angel Company Ltd. plans to raise funds through public deposits. Its net worth is ₹ 250 crores.

1. Can they accept deposits from the public?
2. Can they accept deposits which mature after 5 years?
3. Within what period should the company issue deposit receipt to its depositors?

Answer 1

1. Yes, Angel Company Ltd. can accept public deposits. A public company having the required net worth (₹ 100 crores or more) can raise funds through public deposits. Since its net worth is ₹ 250 crores, it is eligible.
2. No, the company cannot accept deposits that mature after 5 years. As per the rules, public deposits can be accepted for a minimum of 6 months and a maximum of 36 months (3 years).
3. The company must issue a deposit receipt within 21 days of receiving the deposit money to the depositors.