MCA issues notices to errant NBFCs

MCA issues notices to errant NBFCs

In yet another attempt to crack the whip on shell companies, the Ministry of Corporate Affairs has issued notices to companies which were supposed to act as non-banking financial companies but have not registered with the Reserve Bank of India (RBI). The ministry had taken this action to seek explanation from these companies on their businesses within 10 days, a source said. If companies are found to be in non-banking financial activities such as lending, investment or deposit acceptance as their principal business, without RBI registration, the central bank can impose penalty or even prosecute them in a court of law.

The Business Standard, New delhi, 09th September 2017

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