How Finance Companies Differ From Credit Cards, Banks (2)
After the Companies Bill, 2011 was presented in Parliament late last year, it was referred to the Standing Committee on Finance chaired by Mr. Yashwant Sinha. Depending on the size of the company, it may be licensed in one state or dozens of states, says Danielle Fagre Arlowe, senior vice president of the American Financial Services Association, a trade association for the consumer credit industry that represents traditional installment lenders, such as the big auto finance companies.
This is the territory covered by Young Company Finance – we track and write about early stage companies with high growth potential, which have had or intend to look for external investment by business angels or VCs to help them realise their ambitions.
Yet others include the constitution of the National Company Law Tribunal (and whether it should include members of the Company Law Board), exemptions to private companies from certain provisions of the Act, and consolidation and subdivision of capital.
RBI vide its press release ‘Temporary suspension of issuing Certificate of Registration (COR for conducting business of NBFI’ dated 1st April, 2014, announced its decision to keep in abeyance the issue of certificate of registration to the companies proposing to conduct business of NBFI in terms of Section 45IA of the RBI Act for a period of one year, except for CIC-ND-SIs, IFCs, IDF-NBFCs and NBFC-MFIs.
Although this proposal was resisted by the Ministry of Corporate Affairs on the grounds that this would overburden government companies that are subject to several other requirements and also that such impact may be incapable of quantification, the Committee feels strongly about the need for such a report.