BENEFITS OF INCORPORATING NBFC: According to research and studies it is proved that NBFCs are outperforming banks. The continued better performance from NBFCs has given rise to an uptick of 15% customer satisfaction as compared to the banking customers. The same is agreed by the RBI according to the recent Financial Stability Report. Banks and NBFCs are financial intermediaries and the services offered by them are pretty much the same as banks.However, the benefits of incorporating an NBFC and carrying on its activities are listed below: 1.Competitive Interest Rates: Rate of interest is one of the main aspects of all types of loans. Non-Banking Financial Sectors have started to concentrate on this area in the recent decades and have brought down the interest rates to either equal to bank lending rates or at times even lower to bank rates. With all the other benefits when rate o...
Types of non banking financial company 1. Asset Finance Company (AFC) 2. Investment Company (IC) 3. Loan Company (LC) 4. Infrastructure Finance Company (IFC) 5. Systemically Important Core Investment Company 6. Infrastructure Debt Fund - Non- Banking Financial Company (IDF-NBFC) 7. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI) 8. Non-Banking Financial Company – Factors (NBFC-Factors) 9. Mortgage Guarantee Companies (MGC) 10. NBFC I. Asset Finance Company (AFC): An AFC is a company which is a financial institution carrying on as its principal businessas the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipment, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets...
The securities and exchange board of India INTRODUCTION SEBI is a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable and to contract, sue and be sued in its own name. Its Head Office is at Mumbai and is empowered to establish its offices at other places in India. SEBI presently has offices also in Ahmedabad, Jaipur, Kolkata, Guwahati, Bhubaneswar, New Delhi, Chennai and Bengaluru. ...
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