Sec 372a on nbfc

This query is : Resolved

Chandrashekhar (Querist)
Follow

16 March 2012 Dear All,

The following is a query with regard to sec 327A that –

The NBFC is engaged in providing business loans and advances. Now whether Section 372A of the Companies Act, 1956 applicable to an NBFC?

Thanks in advance

Regards
Chandrashekhar

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 March 2012 Hi

Sub Section (8) of Section 372A does not exclude the non banking financial institution from the purview of section 372A as an NBFC is different from that of a Banking company, as defined in the Banking Regulation Act, 1949.

So, section 372A will not apply to NBFC company.

Regards