NBFC

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Sheetal (Querist)
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24 March 2011 A company receiving its income only from Interest on investment . Almost 80% of revenue is from receipt of interest.

Will this situation means that the company is NBFC?
What is the provision for a company to automatically fall under the catagory of NBFC?

Please Guide....

Pravin Gupta CS

Pravin Gupta CS (Expert)
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25 March 2011 As per sec. 451 A of RBI Act, 1934 " a NBFC menas a company registered under companies act, 1956 and is engaged in the business of Loans and advances . acqusition of scrips, leasing , hire purchase, insurence business, chit business.. but does not include any institution whose pricipal business is that of agriculture activity, industrial act.

Nbfc comapny also divided in 3 catagory:
1. Assets finance company
2. investment company
3. Loan company

so if the company's major income comes from intrest income and nature of business is investment than its required NbFC registration........

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Sheetal

Sheetal (Querist)
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25 March 2011 whether there is any fixed % prportion of Income ..meaning more than 80% or 60% of income should be from interest?

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