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When a company obtains a loan or any form of credit, it often pledges its assets or properties as collateral. This pledge, referred to as a “charge,” must be registered with the Registrar of Companies (RoC) to maintain transparency, protect creditors’ interests, and ensure compliance with legal standards. The Companies Act, 2013, extensively covers the […]

In the framework of corporate finance, companies often seek to raise capital through deposits. However, to ensure the protection of public funds and mitigate financial risks, India’s Companies Act, 2013, establishes strict regulations surrounding the acceptance of public deposits. Under Section 73 and Section 76 of the Companies Act, specific rules and procedures are laid

In the corporate finance landscape, accepting deposits from the public is a crucial method for companies to raise funds. However, such practices are bound by strict legal frameworks to ensure transparency, protect investors, and mitigate financial risks. The Companies Act, 2013, alongside other regulatory guidelines, governs public deposit acceptance by certain companies in India, establishing

In corporate finance, accepting deposits from the public is a critical activity for companies needing funds for expansion and operations. However, this process must adhere to stringent laws, especially to prevent fraudulent practices that exploit investor trust. In India, the Companies Act, 2013 governs corporate conduct around accepting deposits, ensuring that depositors are protected from

With the enactment of the Companies Act, 2013, new regulations were established concerning deposits accepted by companies. One crucial area that the Act addressed was the treatment and repayment of deposits accepted by companies before the Act’s commencement. This transition created a need for clarity and structure regarding outstanding deposits, ensuring investor protection and compliance

The prohibition on public companies accepting deposits from the public is a cornerstone of the regulatory framework designed to protect investors and maintain financial stability. Under the Companies Act, 2013, this prohibition ensures that only companies meeting specific legal requirements can raise funds from the public, thereby reducing the risks to individual investors. In this

In the intricate framework of corporate governance, the power to nominate is a significant legal provision that enables shareholders to designate individuals who will inherit their shares or debentures in the event of their demise. This feature is particularly crucial for ensuring the smooth transfer of ownership and maintaining continuity in shareholding. In this article,

Debentures play a crucial role in the financing landscape for companies, serving as a popular instrument for raising capital. They represent a type of debt security that companies issue to borrow funds from investors with a promise to pay back the principal along with interest. In this comprehensive article, we will explore the nature of

Buy-back of shares is a strategic financial maneuver employed by companies to optimize their capital structure, improve earnings per share (EPS), and return excess cash to shareholders. However, the Companies Act, 2013, and associated regulations impose certain restrictions on buy-backs to protect the interests of shareholders and creditors. This article explores the circumstances under which

The transfer of certain sums to the Capital Redemption Reserve Account is a crucial aspect of corporate finance, particularly for companies that issue redeemable preference shares or engage in buybacks of their own securities. This practice is governed by specific regulations under the Companies Act, 2013, and is designed to protect creditors while ensuring that