Assume no other exclusion in rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 applies. Which receipt is a deposit?
Question and options
Assume no other exclusion in rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 applies. Which receipt is a deposit?
Money raised by issuing unlisted unsecured NCDs
A loan received from another Indian company
A loan received from a scheduled commercial bank
Money raised by issuing commercial paper
Answer and explanation
Rule 2(1)(c)(ixa) excludes money raised through non-convertible debentures that create no charge on assets only if they are listed on a recognised stock exchange, so unlisted unsecured NCDs are a deposit. Commercial paper, loans from banking companies and loans from other companies are expressly excluded.
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