alleryStart learning →How must deposits that are not fully secured be described in a circular?
ASubordinated deposits
BContingent deposits
CUnsecured deposits
DPriority deposits
Answer & Solution
Correct answer: C. Unsecured deposits
Where deposits are unsecured or only partly secured, section 73(2) says they are termed unsecured deposits and quoted so in every document inviting them.
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Related questions
Where must a company inviting public deposits upload the circular?A deposit circular stays valid for how long after the financial year closes (at most)?Who signs the circular copy sent to the Registrar under Rule 4(5)?On whose authority and name must a deposit circular be issued?An eligible company's public deposit circular is issued in which form?A section 73(2) company can send its member circular by which mode?After issuing the circular, what may a company not reserve a right to do?Who alone is entitled to brokerage on deposits procured for a company?