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?
[ICRA]B+(Stable); ISSUER NOT COOPERATING
https://www.icra.in/Rating/GetRationalReportFilePdf?id=128834
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.
given it’s not an RBI regulated entity I’ll avoid this for the same reason I don’t invest in credit risk funds.
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.
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.
