Section 76 of the Companies Act, 2013
Section 76 of the Companies Act, 2013 – Acceptance of Deposits from Public by Certain Companies
📘 Bare Provision:
Section 76(1):
Notwithstanding anything in section 73, a public company (other than a private company), which:
has a net worth of not less than ₹100 crore or
a turnover of not less than ₹500 crore
may accept deposits from the public, subject to the following:
✅ Conditions:
It must comply with the provisions of Section 73 (which deals with deposits from members).
It must also comply with additional prescribed rules (under the Companies (Acceptance of Deposits) Rules, 2014).
It must obtain a credit rating from a recognized credit rating agency.
It must create a deposit repayment reserve account with at least 20% of the deposits maturing in the next financial year.
It must provide deposit insurance, as prescribed.
⚖️ Section 76(2):
If a company fails to repay the deposit or interest thereon, the company and every officer in default shall be liable under Section 74 (which includes penalties and prosecution).
✅ Applicability:
Only to:
Eligible public companies (having the required net worth or turnover)
Which comply with prescribed rules, including filing with ROC, maintaining reserve accounts, insurance, etc.
🧾 Example:
A public company having ₹150 crore net worth wants to raise funds by accepting deposits from the general public. It can do so only after complying with Section 76, which includes getting a credit rating, maintaining reserves, insurance, and following filing procedures.
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