for incorporation of finance co.
This query is : Resolved
04 May 2010
DEAR ALL,
I WANT TO KNOW HOW WE MAKE FINANCE CO. WHAT ARE THE DIFFERENCE FROM NORMAL COMPANY. ANY SPECIAL GUIDELINE FROM RBI. FROM WHERE I CAN KNOW THE DETAILS
THANKS
I WANT TO KNOW HOW WE MAKE FINANCE CO. WHAT ARE THE DIFFERENCE FROM NORMAL COMPANY. ANY SPECIAL GUIDELINE FROM RBI. FROM WHERE I CAN KNOW THE DETAILS
THANKS
05 May 2010
The reserve bank of India regulates the working and operations of NBFC within the framework of the Reserve Bank of India Act, 1934 and the directions issued by it under the act. According to RBI act, NBFC is Non-banking financial company, which is registered under the Companies Act, 1956 of India and is engaged in the business of loans and advances, acquisition of shares/ debentures /stock/bonds/securities issued by government or local authority.
Under the Act, it is compulsory for a NBFC to get itself registered with the RBI as a deposit taking company. This NBFC registration authorizes it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and eager of commencing business of non-banking financial institution, should have a minimum net owned fund of Rs 25 lakh.The NBFC registration in India involves submission of an application by the company in the prescribed format along with the compulsory documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can hold public deposits. The NBFCs accepting public deposits should comply with the Non-Banking Financial Companies Acceptance of Public Deposits Directions, 1998, as issued by the bank.
Under the Act, it is compulsory for a NBFC to get itself registered with the RBI as a deposit taking company. This NBFC registration authorizes it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and eager of commencing business of non-banking financial institution, should have a minimum net owned fund of Rs 25 lakh.The NBFC registration in India involves submission of an application by the company in the prescribed format along with the compulsory documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can hold public deposits. The NBFCs accepting public deposits should comply with the Non-Banking Financial Companies Acceptance of Public Deposits Directions, 1998, as issued by the bank.
05 May 2010
CHECK OUT FOLLOWING LINK---
http://www.rbi.org.in/scripts/BS_ViewNBFCNotification.aspx
http://www.rbi.org.in/scripts/BS_ViewNBFCNotification.aspx
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