alleryStart learning →How often must a section 76 company obtain a credit rating?
AOnce at first invitation
BOnce every five years
CEvery year of the tenure
DOnly at incorporation
Answer & Solution
Correct answer: C. Every year of the tenure
The first proviso to section 76(1) requires the rating from a recognised agency to be renewed for every year during the deposits' tenure.
Keep practising Acceptance of Deposits by Companies
Browse all Acceptance of Deposits by Companies questions for CA Inter, or explore more Law topics.
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?