The Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 came into force on the 1st day of July 1977. It applies to all nonbanking financial companies and miscellaneous non-banking companies.


1. Every company intending to invite or allowing or causing any other person to invite or cause to be invited on its behalf, any deposits from the public, other than its directors, shareholders or employees shall issue an advertisement for the purpose in a leading English newspaper and one vernacular newspaper circulating in the state in which the registered office of the company is situated.

2. No such company shall issue or allow any other person to issue or cause to be issued on its behalf any advertisement inviting deposits unless such advertisement is issued on the authority and in the name of the Board of Directors of the company and contains a reference to the conditions subject to which deposits shall be accepted by the company, the date on which the said Board of Directors has approved the text of the advertisement and the

following information, namely:

(a) The name of the company;

(b) The date of incorporation of the company;

(c) The business carried on by the company and its subsidiaries with details of

branches or units, if any;

(d) Brief particulars of the management of the company;

(e) Names, addresses and occupations of the directors;

(f) Profits of the company before and after making provisions for tax for three financial years immediately preceding the date of advertisement;

(g) Dividends declared by the company in respect of the said years;

(h) A summarized financial position of the company as in the two audited balance sheets immediately preceding the date of advertisement.

(i) The amount which the company can raise by way of deposits under the directions and the aggregate deposits actually held on the last day of the immediately preceding financial year;

(j) A statement to the effect that on the day of the advertisement, the company has no overdue deposits other than unclaimed deposits or a statement showing the amount of such overdue deposits, as the case may be;

(k) A declaration to the effect: (i) that the company has complied with the provisions of the directions applicable to it; (ii) that the compliance with the directions does not imply that repayment of deposits is guaranteed by the Reserve Bank of India; and (iii) that the deposits accepted by the company (other than secured deposits, if any, accepted under the provisions of the directions the aggregate amount of which may be indicated) are secured and ranking pari passu with other unsecured liabilities.


An advertisement issued in accordance with the results shall be valid until the expiry of six months from the date of closure of the financial year in which it is issued or until the date on which the balance-sheets laid before the company in the general meeting or where the annual general meeting for any year has not been held, the latest day on which that meeting should have been held in accordance with the provisions of the Companies Act, 1956, which ever is earlier, and a fresh advertisement shall be made in each succeeding financial year for invitation of deposits during that financial year.


No advertisement shall be issued by or on behalf of company unless, on or before the date of its issue, this has been delivered to the Regional Office of the (Department of Non-Banking Companies) of the Reserve Bank of India within whose jurisdiction the registered office of such company is situated, a copy thereof signed by a majority of the directors constituting the Board of Directors which approved the advertisement or by their agents authorizing in writing.


For the purpose of this sub-rule, the date of the issue of the newspaper in which the advertisement appears shall be taken as the date of issue of the advertisement.