THE PRIMARY BUSINESS OF NBFC IS LENDING MONEY . THERE IS NO RESTRICTION ON NBFC WITH REGARDS TO LENDING MONEY TO GROUP COMPANIES PROVIDED IT CHARGES THE SAME INTEREST RATE TO GROUP COMPANIES WHICH IT CHARGES TO ANY OTHER OUTSIDE PARTY.
ANOTHER POINT SHOULD BE TAKEN CARE OF IS THE PERCENTAGE OF SHAREHOLDING OF THE GROUP COMPANY IN THAT NBFC. IF SHAREHOLDING PERCENTAGE IS >=10% IT WOULD BE ADVISED TO NOT TO GIVE LOAN TO THAT GROUP COMPANY AS THE SAME CAN BE TREATED AS DEEMED DIVIDEND IN THE HAND OF GROUP COMPANY.
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