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    Compliances for NBFC

    Posted By : SHALU / Published on : 28-Dec-2022 06:59 AM / View : 235 / Comment : 1

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    Which sections of the Companies Act applicable or having exemption for NBFC Companies in regard to loan, investment and borrowings ?
    Read more on : nbfc compliances

    • As per the Reserve Bank of India (RBI), Non-Banking Financial Companies (NBFCs) are regulated under the RBI Act, 1934 and the guidelines issued by the RBI from time to time. However, NBFCs are also governed by the provisions of the Companies Act, 2013, and its rules and regulations.

      Some of the relevant sections of the Companies Act, 2013, applicable to NBFCs are:

      1. Section 186: This section specifies the restrictions on the company's ability to make investments, loans, and guarantees. NBFCs are also subject to this section.

      2. Section 185: This section imposes restrictions on a company in respect of giving loans to directors or persons connected with them. However, certain exemptions have been provided to NBFCs.

      3. Section 73 and Section 76: These sections specify the rules and regulations regarding acceptance of deposits by a company. NBFCs, being companies that accept deposits from the public, are also subject to these sections. However, the RBI has issued separate guidelines for acceptance of deposits by NBFCs.

      4. Section 372A: This section deals with the requirement of a special resolution for the sale, lease, or disposal of a substantial part of the assets of the company. NBFCs are also subject to this section.

      Please note that there may be exemptions or modifications to the above sections for NBFCs, as provided by the RBI or any other regulatory authority. It is recommended to refer to the latest guidelines and regulations issued by the relevant regulatory authorities while dealing with NBFCs.

      31-03-2023 / 11:20:25 AM
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