Updated: 17 September 2026

Sections 76 and 77 of the Companies Act, 2013: Public Deposits and Registration of Charges

Section 76 governs acceptance of deposits from the public by prescribed public companies, while Section 77 imposes the duty to register charges created by a company over its property, assets or undertakings. The two provisions operate in different chapters of the Companies Act, 2013 but can overlap where public deposits are secured by a charge over company assets.

Contents

Section 76 - Acceptance of deposits from public
Important Section 73 conditions
Section 77 - Duty to register charges
Registration timelines under Section 77
Forms and practical compliance
Official resources

Section 76 - Acceptance of deposits from public by certain companies

Section 76 is an exception to the general restriction in Section 73. It permits a public company meeting the prescribed financial eligibility requirements to accept deposits from persons other than its members, subject to Section 73(2), Chapter V of the Act and the Companies (Acceptance of Deposits) Rules, 2014.

Meaning of an eligible company

For deposit-rule purposes, an "eligible company" is a public company having the prescribed net worth or turnover and satisfying the conditions specified in the Companies (Acceptance of Deposits) Rules, 2014. Before accepting public deposits, the company must comply with the applicable approval, circular or advertisement, filing, repayment-reserve, credit-rating and other statutory requirements.

Credit rating requirement

A company accepting deposits from the public under Section 76 must obtain a rating from a recognised credit rating agency. The rating is intended to reflect matters including the company's net worth, liquidity and ability to repay deposits when due. The rating must be obtained for every year during the tenure of the deposits.

Secured public deposits

Where deposits accepted from the public are secured, Section 76 requires the company to create the prescribed charge over its assets in favour of the deposit holders. The statutory text requires the charge to be created within thirty days of acceptance of secured deposits and for an amount not less than the amount of deposits accepted, subject to the applicable rules.

Practical point: Acceptance of public deposits is not authorised merely because a company is a public company. The company must fall within the prescribed category and comply with the Act and the Companies (Acceptance of Deposits) Rules, 2014.

Section 76(2) further provides that the provisions of Chapter V apply, with necessary changes, to acceptance of deposits from the public under Section 76.

Important Section 73 conditions linked to Section 76

Because Section 76 expressly incorporates the requirements of Section 73(2), an eligible company accepting deposits must also consider the applicable conditions under that provision and the deposit rules. These include statutory disclosures and filing requirements, maintenance of the deposit repayment reserve and compliance relating to repayment defaults.

Under the current text of Section 73(2)(c), the company must, on or before 30 April each year, deposit at least twenty per cent of the amount of deposits maturing during the following financial year in a scheduled bank in a separate account called the "deposit repayment reserve account". The reserve is restricted to repayment of deposits.

Section 77 - Duty to register charges

Section 77 requires every company creating a charge, whether within or outside India, on its property, assets or undertakings, whether tangible or otherwise and whether situated in or outside India, to register the particulars of the charge with the Registrar of Companies in the prescribed form, manner and time.

Meaning of "charge"

Section 2(16) of the Companies Act, 2013 defines a "charge" as an interest or lien created on the property or assets of a company or any of its undertakings, or both, as security, and includes a mortgage.

The filing is ordinarily made with the instrument, if any, creating or modifying the charge, and is signed or authenticated as required by the Act, the Companies (Registration of Charges) Rules, 2014 and the relevant MCA webform requirements.

Time limit for registration of charge under Section 77

Stage	Current statutory position
Normal filing	Particulars of the charge are to be registered with the Registrar within 30 days of creation.
Charge created on or after commencement of the Companies (Amendment) Act, 2019 regime	The Registrar may allow registration within 60 days of creation on payment of the prescribed additional fee.
Further delayed registration	If registration is not completed within that period, the Registrar may, on application, allow a further period of 60 days on payment of the prescribed ad valorem fee.
Older charges	Section 77 contains transitional provisions for charges created before the relevant amendment regime. Historical filings should be checked against the applicable creation date and amendment provisions.

Any later registration of a charge cannot prejudice a right in the property that was acquired before the charge was actually registered. Section 77 also permits prescribed exclusions for specified charges in consultation with the Reserve Bank of India.

Effect of non-registration: Under Section 77(3), an unregistered charge is not to be taken into account by the liquidator appointed under the Companies Act or the Insolvency and Bankruptcy Code, 2016, or by another creditor, unless the charge is duly registered and the Registrar has issued the registration certificate. Section 77(4), however, preserves the underlying contract or obligation to repay the secured money.

Forms and practical compliance for registration of charges

Under the Companies (Registration of Charges) Rules, 2014, the prescribed filing for creation or modification of a charge is generally made in Form CHG-1 for charges other than debentures and Form CHG-9 for debenture-related charges, as applicable. The instrument creating or modifying the charge and the prescribed authentication and fee requirements must also be complied with.

After a charge is registered, Section 77(2) requires the Registrar to issue the prescribed certificate of registration to the company and, as applicable, to the person in whose favour the charge is created.

Section 76 and Section 77 - Key distinction

Provision	Main subject	Core compliance
Section 76	Acceptance of deposits from the public by prescribed public companies	Compliance with Section 73(2), deposit rules, annual credit rating and requirements relating to secured deposits.
Section 77	Registration of charges created by a company	File prescribed particulars and instruments with the Registrar within the statutory time and obtain registration.

Official legal resources

For the controlling statutory text and current MCA filing requirements, refer to the Companies Act, 2013 - Ministry of Corporate Affairs, the Companies (Registration of Charges) Rules, 2014, and the MCA portal for current forms, notifications, rules and filing services.

This article is a general explanation of the statutory provisions. For a transaction or filing, the latest Act, rules, MCA notifications, webform instructions and facts of the particular company should be checked before action is taken.