NBFCs and Micro Finance Companies

CoA Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).

The RBI is empowered to issue the license to the NBFCs for carrying on the business of finance subject to compliance of certain rules and regulations issued by the RBI from the time to time but in certain cases the power has been delegated like: in case of Nidhi Companies, which is also a NBFC, power to regulate has been assigned to the Ministry of Corporate Affairs and In case of Housing Finance NBFCs , the power has been delegated to National Housing Bank and in case of chit fund companies and Stock Broking Companies, powers has been  delegated to Registrar of Chits and Securities Exchange Board of India respectively.

Our expertise team with its holistic approach assists the non-banking finance companies to regulate themselves in as per the specified norms of RBI. Apart from the Regularization of existing NBFCs, our team holds the expertise in formation of NBFCs and exempted NBFCs as well.