COs FREE TO LEND TO SICK UNITS VIA BIFR ROUTE

Article Abstract:

Companies have been permitted to offer loans at less than the bank rates, Mr T S Krishnamurthy, Secretary, Department of Company Affairs, has announced. Such loans, however, can be offered only to sick companies for rehabilitation under the Board for Industrial and Financial Reconstruction's (BIFR) plan. This is because the provisions of the Sick Industrial Companies Act overrides the provisions of the Companies Act. The Ficci, under the apex industry chambers, had stated that promoters would not invest additional capital in sick companies, if the interest rates on inter-corporate investments are linked. It has also claimed that such provisions would cause inconvenience to the industry. (ag)

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RBI DECLARES NUCB ILLEGAL, WARNS PUBLIC

Article Abstract:

The Reserve Bank of India (RBI) has warned the public against having any dealings with the National Urban Co-operative Bank (NUCB), New Delhi. NUCB is not registered with the Registrar of Co-operative Societies, New Delhi. It does not have licence from RBI to engage in banking business. The promoters have collected money as application fee for 465 vacancies in the bank. NUCB's promoters have been selling the shares of the bank unlawfully. (rk)

Comment:

Is barred from having deals with public for failure to secure license from Reserve Bank of India

Article, National Urban Co-operative Bank

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RBI ALLOWS SELECT NBFCs TO RAISE PUBLIC DEPOSITS

Article Abstract:

The Reserve Bank of India (RBI) has permitted a few non-banking finance companies (NBFCs) to mobilise deposits from the public. It has rejected the applications of 1040 NBFCs and has approved the applications of only 548 companies. Out of this, 441 companies have been given certificates of registration while the remaining 143 NBFCs will be issued the certificate after they complete certain compliances directed by the RBI. (khr)

Reserve Bank of India

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