Loan given and taken by an nbfc company

Co Act 2013 875 views 1 replies

Hi everyone,

Can a NBFC (Pvt Ltd) with a paid up capital of 10 crore provide Loan to the following:

1. A Body corporate in which the director of the NBFC is a Director.

2. Any other body corporate.

Also can an NBFC (Pvt Ltd) with a paid up capital of 10 Crore take a loan frpm the following companies

1. A Body corporate in which the director of the NBFC is a Director.

2. Any other body corporate.

Please experts give your views.

Replies (1)

Position under Companies Act 2013 (subject to further compliance of RBI regulations):

Giving loans:

1. Yes, if it is covered under Proviso (b) to Section 18591).

2. Yes, if it is covered u/s 186(11).

Taking loans:

Yes - within the limits specified in Sec.180(1)(c).

 


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