A private limited company incorporated under the Companies Act, 2013 may issue debentures to any number of persons and can accept deposits from the public.

According to the definition of private company under Section 2(68) of the Companies Act, 2013, a private limited company is prohibited to make an invitation to the public to subscribe for any securities of the company. 'Securities' has been defined under section 2(81) of the Companies Act, 2013 to mean the securities as defined in Section 2(h) of the Securities Contracts (Regulation) Act, 1956. As per Section 2(h) of the Securities Contracts (Regulation) Act, 1956, 'Securities' include debentures, debenture stock or other marketable securities of a like nature. However, under Section 42 of the Companies Act, 2013, a Private Company may issue such securities on private placement basis only to a selected group of persons who have been identified by the Board, and whose number shall not exceed 200 in the aggregate in a financial year excluding the qualified institutional buyers and employees of the company being offered securities under a scheme of employees stock option subject to prescribed conditions. Further, as per Section 73 and 76 of the Companies Act, 2013, only the following may invite, accept or renew public deposits from the public: a banking company, non-banking financial company as defined in the Reserve Bank of India Act, 1934, to such other company as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf, Public company (Eligible Company) having Net worth not less than ₹100 Crores or Turnover not less than ₹500 Crores and which has obtained the prior consent of the company in general meeting by means of a resolution and also filed the said resolution with the Registrar of Companies before making any invitation to the Public for acceptance of deposits. Thus, a Private Company cannot accept deposits from Public.