# Rule 4 — Issuance of Circular / Advertisement

Rule 4 distinguishes between non-Eligible companies (circular to members only) and Eligible companies (public advertisement).

## A. Non-Eligible Company (Deposits from Members only)

Issue a circular in Form DPT-1 to all members.
Modes of delivery: registered post with AD, speed post, or electronic mode.
The circular may also be published in:
English in an English newspaper, AND
Vernacular language in a vernacular newspaper, both with wide circulation in the State where the registered office is located.
Statutory Auditor's Certificate must be attached in Form DPT-1, certifying that the company has not defaulted in repayment of deposits or interest. If a past default existed, the company must have made it good and 5 years must have lapsed since making it good.
Authority: Circular issued on the authority and in the name of the Board of Directors.
Filing with Registrar: Copy must be delivered to the Registrar at least 30 days before issue, signed by majority of approving directors (or their duly authorised agents).

## B. Eligible Company (Deposits from Public)

Issue a circular in the form of an advertisement in Form DPT-1.
Publish in both English newspaper (English) and vernacular newspaper (vernacular language), having wide circulation in the State of the registered office.
If the company has a website, the circular must also be placed on the website.
Issued on the authority and in the name of the Board of Directors.
Filing with Registrar: At least 30 days before issue, signed copy delivered for registration.

## Validity of Circular / Advertisement

Valid till the earliest of:

(a) 6 months from the closure of the financial year in which issued; OR

(b) The date on which financial statements are laid before the company at AGM (or the last date by which AGM should have been held, if no AGM held).

## Fresh Circular Each Year

A fresh circular/advertisement must be issued in each succeeding financial year for fresh invitation.

## Issue Date vs Effective Date

Worked example

### Example 1

Example 1 — Validity expiry

A company (FY ending 31-Mar) issues a deposit advertisement on 1-Jul-2025. Its AGM is held on 15-Aug-2025. Till when is the advertisement valid?

Solution: Validity = earlier of:

(a) 6 months from FY closure = 30-Sep-2025; OR

(b) AGM date = 15-Aug-2025.

The earlier date is 15-Aug-2025, so the advertisement remains valid only up to that date.

### Example 2

Example 2 — Filing timeline

A company plans to publish its public deposit advertisement on 1-Aug. By when must the signed copy be delivered to the Registrar?

Solution: At least 30 days before publication — i.e., on or before 1-Jul.

⚠️ Common exam mistakes

Confusing the modes: for non-Eligible companies, newspaper publication is permissible, but for Eligible companies it is mandatory in both English and vernacular.
Forgetting the auditor's certificate in Form DPT-1 confirming the 5-year cooling-off after making good past defaults.
Treating validity as a fixed 12 months — it is the earlier of two specified dates and never extends beyond the AGM.
Confusing 'date of issue' (newspaper publication date) with 'effective date' (dispatch date of the circular).

Bare-Act text Rule 4 · Companies (Acceptance of Deposits) Rules, 2014 · click to expand

Rule 4, Companies (Acceptance of Deposits) Rules, 2014 — Form and particulars of advertisements or circulars.

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Issuance of Circular / Advertisement for Deposits (Rule 4)

Worked example