07 August 2012
As per the RBI Act the company engaged in business of acquisition of shares/stock/bonds/debentures/securities issued by Government is treated as NBFC.
But Can a company engaged in business of trading in government securities with its own fund can be treated as NBFC?
The investment in own fund cannot be treated as NBFC. The company invest the money as it deem fit and it comes under the head investment and it should not be the main activities of the company.
CAclubindia
