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Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Whether all the financing co be termd as NBFC.
or there is condition for having NBFC.

Ajay Mishra

Ajay Mishra (Expert)

30 October 2012 QUES -1 What is a Non-Banking Financial Company (NBFC)?
ANS -1 A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 Thanks sir,
But my question is whether the above company require any further compliance to run as NBFC. means after incorportion whether it requires to get registered under any other authority.

Ajay Mishra

Ajay Mishra (Expert)

31 October 2012 No, If you have registered with MCA and RBI and other regulatory authority as delegated by RBI then no need to take further any approval.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 Thanks sir
Registration with RBI is for all or there is any condition attached. (Share capital exceeding certain limit)

Ajay Mishra

Ajay Mishra (Expert)

31 October 2012 Hi

MCA says in its approval letter for NBFC company which is mentioned below:

1. In case of NBFCs (Non-banking Financial companies) there is a requirement to maintain a minimum net owned fund of Rs. 2, 00, 00,000 (Rupees Two Hundred Lacs) or such sum as maybe prescribed by the Reserve Bank of India (RBI) from time to time and no new NBFC shall commence business as such without obtaining a certificate of registration from RBI as per provisions of Reserve Bank of India Act, 1934.
2. Please note that certificate of commencement of business in case of NBFCs can be issued only after the above requirement as per the provisions of Section 45-1A (1) RBI (Amendment) Act, 1997 have been complied with.

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