Which of the following statement is are correct regarding Non banking finance companies NBFC s 1 nbs...........

Economic Affairs Non Banking Financial Companies (NBFCs)

Download Solution PDF

Which of the following statement is/are correct regarding Non banking finance companies (NBFC)s?

1. They can’t issue cheques.

2. They can engage in insurance business.

Select the correct answer using codes given below.

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Non Banking Financial Companies (NBFCs)

Prepare through Micro-courses

Try Now

Explanation:

Both the statements are correct.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 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.