G.Maharshi (Assistant Company Secretary) (30 Points)
04 February 2015Hi everyone,
Can a NBFC (Pvt Ltd) with a paid up capital of 10 crore provide Loan to the following:
1. A Body corporate in which the director of the NBFC is a Director.
2. Any other body corporate.
Also can an NBFC (Pvt Ltd) with a paid up capital of 10 Crore take a loan frpm the following companies
1. A Body corporate in which the director of the NBFC is a Director.
2. Any other body corporate.
Please experts give your views.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 09 February 2015
Position under Companies Act 2013 (subject to further compliance of RBI regulations):
Giving loans:
1. Yes, if it is covered under Proviso (b) to Section 18591).
2. Yes, if it is covered u/s 186(11).
Taking loans:
Yes - within the limits specified in Sec.180(1)(c).
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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