Comment on the following: Creation of security for repayment of Deposit is not mandatory for all companies while accepting Deposit.

As per rule 6 of the Companies (Acceptance of Deposits) Rules, 2014: Every company referred in Section 73(2) and eligible company as defined under Rule 2 of the Companies (Acceptance of Deposits) Rules, 2014, accepting deposits from its members shall provide security by creating charge on the assets of the company as referred to in Schedule III of the Act excluding its intangible assets.