Avail 50% discount on all online CA classes for Nov Exam(access till Nov 20th). Use coupon code NOV15

close x
Home > Experts > Shares & Stock > Meaning of Financial Assets for NBFC

Please Wait ..

to your account


Remember Me | Forgot your password?


Sign-up now

Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

Alternatively, you can log in using:

Meaning of Financial Assets for NBFC (Shares & Stock)

Report Abuse
This query is : Resolved

( Author )
02 November 2009

RBI Press release dated 08/04/1999 provides as follows:

“A company will be treated as an NBFC if its financial assets are more than 50 per cent of its total assets (netted off by intangible assets) and income from financial assets should be more than 50 percent of the gross income. Both these tests are required to be satisfied as the determinant factor for principal business of a company.”

My query is as under:

What is the meaning of “financial assets” as used above with respect to an NBFC?

Does "financial assets" here include investments in shares of private or unlisted securities?

Members are requested to advise.


( Expert )
02 March 2010

As per AS 26, A Financial Asset includes following:

1. Cash
2. Contractual right to receive cash or other financial asset
3. Contractual right to exchange financial instrument with another enterprise under conditions that are potentially favourable; or
4. An ownership interest in another enterprise.

Going by the above, investments in shares of private or unlisted securities should be included in the meaning of financial assets



You need to be the querist or approved CAclub expert to take part in this query .

Click here to login ( Members Login ) now

Similar Resolved Queries :


Quick Links

back to the top