yashsr (CA) (2285 Points)
24 December 2011Is a money lender's license transferable? There is a person who has sold his money lendering business but is clueless about the license. Can it be transferred to the new buyer or does he have to obtain a new license?
Is this in any way related to NBFC registration?
Thanks for any help!
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 24 December 2011
Business can be transferred, but not the license, as a license is granted to individual or his firm on fulfillment of certain terms and conditions and the constitution of the firm including the financial stability of the owner. Since the constitution and the owners of the business are changed, new license on fulfilling the terms and conditions by the new owner would be required. Of course, NBFC registration would also be required.
Money lender license is not transferable...
It has nothing to do with NBFC. NBFCs are monitored by RBI. No money lending license is required.Money lending license is issued by State Govt, to the individuals and proprietor shops
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