06 January 2024
A company whose principal business is to run a playgroup for toddlers, parks its surplus funds in shares & securities of listed companies. Over a period of time these financial asset (shares & securities) exceeds 50% of the total assets of the company. Income from such assets also exceeds 50% of gross income of the company thereby fulfilling 50-50 Asset Income Test of RBI. Whether this company is required to obtain registration as NBFC from RBI even if its principal business is not that of NBFC.
14 January 2024
A non-banking institution that is a company and has principal business of receiving deposits under any scheme or arrangement by any mode is also a non-banking financial company (Residuary non-banking company).
Exclusions from the definition: The NBFC business does not include business whose principal business is the following:
Agricultural Activity Industrial Activity Purchase or sale of any goods excluding securities Sale/purchase/construction of any immovable property – Providing of any services
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