BEARDSELL LIMITED, Listed Company launched Fixed Deposit Scheme to its Shareholders.
Pls share more details specific to default (org unable to pay).
Is it good way to invest?
Application Form shared over shareholder email: Beardsell-Application_Form.pdf - Google Drive
Are companies even allowed to raise deposits like this?
foobar
October 1, 2024, 4:37am
3
[ICRA]B+(Stable); ISSUER NOT COOPERATING
https://www.icra.in/Rating/GetRationalReportFilePdf?id=128834
ICRA rates debt instruments issued by corporate entities, commercial banks, non-banking finance companies, financial institutions, public sector undertakings and municipalities, among others. ICRA enjoys a strong market acceptance with issuers,...
Isn’t this a form of credit risk debt/bond?
No, its not bond, Friend got mail yesterday only and only few days window to apply for fixed deposit scheme as written in Application form.
Never Heard of FD to raise money by company from existing shareholders, Interest rates mentioned in application form is 9.5% per month on FD by company.
foobar
October 2, 2024, 8:02am
5
(1) On and after the commencement of this Act, no company shall invite, under this Act from the public except in a manner provided under this Chapter: Provided that nothing in this sub-section shall apply to a and non-banking financial company...
given it’s not an RBI regulated entity I’ll avoid this for the same reason I don’t invest in credit risk funds.
SG_13
October 2, 2024, 3:58pm
6
I was wondering…what’s the need to raise funds through deposit, when the company can issue Corporate bonds/ debentures.
Found this :
Debentures v/s Public Deposits
Duration: Debentures are usually long-term, while public deposits are often short to medium-term.
Security: Debentures can be secured or unsecured, whereas public deposits are generally unsecured.
Marketability: Debentures can be traded on exchanges, while public deposits cannot.
Regulatory Oversight: Both are regulated, but debentures typically have stricter compliance requirements.
Abhilash_Patil:
9.5% per month
I assume this was a typo.
It is not 9.5% per month, The interest rate is always expressed as an annual rate.
Here, where the interest is paid monthly, a 1 year deposit carries an interest rate of 9.75% per annum.
So, based on the frequency of payment (monthly/quarterly/cumulative),and the term, the interest rate p.a changes marginally.