If private limited company accepts deposit and invests in shares of other company can it be a nbfc.PL REPLY
1 Replies
Aalhad Mahabal
(Student)
(50 Points)
Replied 04 January 2010
Nope, i dont think just by accepting deposits from relatives, members, a company can become nbfc. If it accepts deposits from any other person, then it will be violating the definition of a Private Company (sec 3 (iii), but it wont attain the status of NBFC by such violation.
other views are welcomed.
A seprate registration is required with RBI if a company wants to get the status of NBFC and the Memorandum should also allow these activities.
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