Financial Education
Question #146
What is the maximum amount of investment that a company can accept in a corporate fixed deposit?
A Non-Banking Non-Finance Company (Manufacturing Company) can accept deposits subject to the following limits: - Up to 10% of the aggregate of paid-up share capital, and free reserves, if the deposits are from shareholders, or are guaranteed by the directors, or - Up to 25% of the aggregate of paid-up share capital and free reserves A Non-Banking Finance Company can accept deposits up to the following limits: - An equipment leasing company can accept four times of its net owned fund - A loan or investment company can accept deposits worth up to one and half times its net owned funds
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