NBFCs that offer FDs need to mandatory get them rated by rating agencies
such as CRISIL, ICRA, CARE, etc. Check the rating of the FD before you
put your money. For instance, a company FD with a AA rating can be
considered a good investment. Also, check the company's past record in
making timely interest payments before you invest.
Company FDs offer much higher returns than bank FDs, since they entail
higher risks. The higher the risk, the higher is the interest rate offered. While
the higher return may be tempting, the safety is lower. Since you are
investing in FDs because you are risk averse, it may make more sense to
go with companies that have high ratings.
The companies offer interest to the investors over public deposits. The
rate of interest, however, varies with the time period of the public deposits.
The companies generally offer 8 to 9 percent interest rate on the deposits
made for one year. The companies offer 9 to 10 percent interest rate over
public deposits for two years while 10 to 11 percent interest rate is offered
for the three year deposits.
There are rules regulating the fixed deposits. According to the Companies
Amendment Rules 1978, here is the list of rules for public deposits:
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The disadvantages of public deposits from the company's point of view are:
The disadvantages of public deposits from the investors' pint of view are:
• The interest that is charged on the public deposits does not enjoy tax
exemption
• There is no pledging of security against public deposits
Since then company deposit market has grown by leaps and bounds.
Today, company deposit market has grown to approximately Rs.25,000
crores. Hundreds of top companies belonging to reputed industrial houses
like Tata, Birla, Escorts, Godrej etc. and government companies like
HUDCO are accepting deposits from public. The numbers of depositors
have increased to around 5 million.
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10.
Registers of deposits.-
(1) Every company accepting deposits shall keep at its registered office one or more
registers in which there shall be entered separately in the case of each depositor
the following particulars, namely:-
a)name and address of the depositor;
b)date and amount of each deposit;
c)duration of the deposit and the date on which each deposit is repayable;
d)rate of interest;
e) date or dates on which payment of interest will be made;
(f) any other particulars with respect to deposit
(2) The register or registers referred to in sub-rule (1) shall be preserved in good order
for a period of not less than eight calendar years from the financial year in which the
latest entry is made in the register.
Tata Motors India’s leading auto maker has announced a new Fixed
Deposit scheme in a bid to raise good fund from the public to beat the credit
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market slump. This scheme offers a 10% for a one-year deposit, with senior
citizens getting 0.5% more.
The company has also also approval to rise up to Rs 1,931.5 crore from the
public through Fixed Deposit. The move comes at a time when the
company is shifting production base of its Nano small car project and trying
to raise cash to refinance the $3 billion debt related to the acquisition of
Jaguar-Land Rover. Last month, the company announced a rights issue
which was bailed out by the promoters and underwriters in the absence of
response from the shareholders. The rights issue had raised Rs 4,145.8
crore.Tata Motors’ consolidated cash and bank balances stood at Rs3833
crore at the end of FY 08, while it had generated a cash flow (net -profit plus
depreciation) of Rs1057 crore in the first half of FY 09.
The company’s net debt to equity was 0.495 in FY 08 and this is likely to
rise to 1.08 by the end of FY 10, according to Citigroup. As Tata Motors
have already been rocking with its insurance and other economic policies,
there is no more doubt for the support from new investors.
February 2009
Sejal ARCITUREAL glass forays Limited (SAGL), a leading player in the
architectural glass solutions, as part of its strategic initiative to reach out to
the masses, has introduced a fixed deposit scheme by inviting deposits from
the public, shareholders and employees of the company.
SAGL will offer non-cumulative and cumulative fixed deposit schemes for a
period of 1, 2 and 3 years bearing an interest of 11.5%, 12% and 12% per
annum respectively. In the cumulative scheme the Company proposes to
also launch a six monthly fixed deposit scheme @ 11% per annum. The
minimum investment amount for its fixed deposit scheme will be Rs.
10,000/- and in multiples of Rs. 1,000/- thereafter.
The company as part of its corporate social responsibility will offer 0.50%
additional interest per annum for its employees, company shareholders,
senior citizens, physically challenged individuals, defence personnel, para-
military forces and ex-servicemen-women.
Mr. Amrut Gada, Chairman & Managing Director, Sejal Architectural Glass
Limited said “Sejal is the only Company till now in the Corporate Fixed
Deposit Market to offer additional interest to the category belonging to
Defence Personnel, Para-Military Force, Ex-Servicemen and the physically
challenged. We expect a positive response on our new initiative and the
money mobilised from the FD scheme will be used for meeting the working
capital requirement needs of the Company”
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Its sheer disappointment that morepen lab has not only not paying back the
deposit amount they don’t even care to respond. CLB or SEBI or any other
authority or the government should intervene in the matter and at least let
us know what is the legal position and the position of the company and
staus of our deposit.
It seems no one cares for the investors in this country. Companies keep
coming for the deposits and keep failing but is there any one agency to take
care of investors issues. We need to know whats the current status. will any
one from the company or CLB inform on this matter.
I request those who are suffering like me to join hands and try to create a
forum and take up the matter with CLB. in case there is any association in
India that can take up the matter with appropriate authorities please do let
me know. if any one interested to join hands together in taking upthe matter
then also please let us know