Financial institutes

This query is : Resolved

Report Abuse Follow Query Ask a Query

shriyeshjain

shriyeshjain (Querist)
Follow

01 July 2012 Sir,
Please give the difference between Public Financial Institutes and Financial Institutes?
Thanku.

Ajay Mishra

Ajay Mishra (Expert)
Follow

01 July 2012 Hi

Section 4A of Companies Act, 1956 defines Public financial institutions.-

(1) Each of the financial institutions specified in this sub-section shall be regarded, for the purposes of this Act, as a public financial institution, namely:-

(i) the Industrial Credit and Investment Corporation of India Limited, a company formed and registered under the Indian Companies Act, 1913 (7 of 1913);

(ii) the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (7 of 1948);

(iii) the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964);

(iv) the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);

(v) the Unit Trust of India, established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963);

2[(vi) the Infrastructure Development Finance Company Limited, a company formed and registered under this Act.]

3[(vii) the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.]

(2) Subject to the provisions of sub-section (1) the Central Government may, by notification in the Official Gazette, specify such other institution as it may think fit to be a public financial institution:

Provided that no institution shall be so specified unless-

(i) it has been established or constituted by or under any Central Act, or

(ii) not less than fifty-one per cent, of the paid-up share capital of such institution is held or controlled by the Central Government.]

Ajay Mishra

Ajay Mishra (Expert)
Follow

01 July 2012 Hi

Financial Institution means an Institution which collects funds from the public and places them in financial assets, such as deposits, loans, and bonds, rather than tangible property.

Upgrade to CAclubindia Pro. Subscribe Now!