arrangement of object clause

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Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2010 I have drafted new object clause for our listed company to make it holding company with main business of an investment company.

"To carry on the business of an investment company and to invest in, and acquire and hold, sell, but or otherwise deal in shares, debentures, debenture-stocks, bonds, units, obligations, mortgages, and securities issued for guarantee by any company, corporation, firm or person whether incorporated or established in India or elsewhere or Indian or Foreign Government, States, Dominions Sovereigns, Municipalities or Public Authorities or bodies provided that the Company shall not carry on the business of banking as defined in the Banking Regulation Act, 1949 or of Insurance as defined in the Insurance Act, 1938, or any statutory modification thereof."

My quiry is that, whether it is possible to do our new business as investment business, without geting registration as NBFC under RBI guidelines?

I am requesting all, if you have any such kind of Main Object clause draft for the same, which can allow our company to do investment business without complaying NBFC norms, please provide me the same accordingly.

Rasesh

Rasesh (Expert)
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26 January 2010 If the company does investment business or falls under the category of an NBFC, then registration as an NBFC is a requirement that the company has to follow. If the company does not register itself as an NBFC, then it would be defaulting in its duty.

The responsibility to register as an NBFC is the same like that of an Sick company getting registered with BIFR. If no registration is taken, it is the duty of statutory auditor to highlight the same. Even if he does not highlight, the company is not absolved of its duty.

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2010 Dear Mr. Rashesh shah

thanks for your reply.

I wish to inform you that, our company will invest the fund in future in their subsidiary companies only and not in any other companinies and our main business will be ventor capiatalist.

Therefore, I am requesting you to please provide me the draft of Main object, which will clear the purpose of our new business without complying with NBFC norms.

Our working is in process and we stuck to this point only.

I need your help accordingly.

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