No, a company dealing only in shares and not taking any deposits would not be considered a non-deposit taking NBFC. Non-banking financial companies (NBFCs) are defined under the Reserve Bank of India Act, 1934, and include any company engaged in the business of providing loans and advances, acquiring shares, debentures, and other securities, or leasing, hire-purchase, insurance business, or chit fund business.
However, if the company is engaged in the business of acquiring shares or other securities, it may be required to comply with the securities laws and regulations, such as the Securities and Exchange Board of India (SEBI) regulations. Additionally, if the company is engaged in trading of shares or securities, it may also be required to obtain certain licenses and registrations from the concerned authorities, such as the Securities and Exchange Board of India (SEBI) and the stock exchanges.
But, According to the Reserve Bank of India (RBI), a company is considered an NBFC if it meets the following criteria:
If a company meets these criteria, it is considered an NBFC and must obtain a license from the RBI to operate. However, if a company does not meet these criteria, it is not considered an NBFC and does not require an RBI license to operate.
An Indian Pvt Ltd co. engaged in certain services classified under export of services under GST.
The company received advance worth 2cr from an overseas customer in March 2020 in USD in their bank account as advance against the travel-based services to be provided. From March 2020 the international travel ceased so, the company has not provided any services for last two years to the said client.
The issue : How will the above advance be treated under section 73 and Deposit rules.
-Whether it falls under Public Deposit/Loan
-Whereas it's simply a business advance against services to be provided in future but outstanding for more than 365 days.
-What options the company has to not the same be treated as deposit/loan.
Please give resolutions
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Company will be considered as Public company since where a company being a private company alters its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private company under this Act, the company shall, as from the date of such alteration, cease to be a private company.
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Presently directors DIN is active and they want to incorporate a new Company , so is it possible ? Please give light on my query
Which sections of the Companies Act applicable or having exemption for NBFC Companies in regard to loan, investment and borrowings ?
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If the Company satisfy the 50:50 criteria of Income and assets then the Company is an nbfc and need licence from RBI.