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John Miller (Business Strategist)     18 November 2020

Can a private ltd issue debentures and accept deposits?

Can a private LTD issue debentures and accept deposits from the public?



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 5 Replies

SHIRISH PAWAR, 7738990900 (Advocate)     18 November 2020

Hello,

As per me, a private limited company can issue secured debentures to the public. 

Adv Vinay Mathur + 8447131770 (Advocate)     18 November 2020

Yes private limited company can issue2013 debentures / bonds under the Companies Act

Sureka Nagendhran (Senior Advocate)     18 November 2020

Private LTD companies can issue debentures but cannot accept the deposits from the public, but only its own directors

LegalWizin (Online Legal Service)     20 November 2020

With reference to notification dated Notification dated 5th June, 2015, the relaxation has been provided to a Private Limited Company to accept deposit from the members of the company however not from the public. Further, the amount of monies accepted from public deposit shall not exceed one hundred per cent, of aggregate of the paid up share capital and free reserves.

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