Jay Sodha (Manager) (24 Points)
02 May 2014Dear Members,
My question : Can An unlisted public company registered as NBFC (non deposit taking NBFC), borrow unsecured loans from Directors and other shareholders. Is section 73 of new copmpanies act is applicable to NBFC ? I read somewhere that section 73 is not applicable to a NBFC. Even few other sections are not applicable to NBFC even if it is registered as private / public company. Please correct me if i am wrong.
CA Sumit Arora
(CA)
(1411 Points)
Replied 02 May 2014
Dear Jay Sodha,
Companies (Acceptance of Deposit) Rules, 2013 provides that rules specified are not application to NBFC.
It is not quoted in section 73.
Rule 1(3)(ii) defines that rules shall apply to company other than
A non banking financial company as defined in Reserve Bank of India Act, 1934 registered with the Reserve Bank of India.
Regards
CAclubindia
