NBFC
Meaning
Different categories of NBFC
legislation on NBFCs
Regulation of NBFCs
Two compulsory prerequisites
Computation of NOF
Procedure for obtaining registration
Processing of application by RBI
Cancellation of registration
Procedure for cancellation of registration
Appellate remedy
NBFCs exempted from registration
Lease
Meaning
Parties
Types
Salient features of Financial lease
Salient features of Operating lease
Hire purchase
Meaning
Condition
Modus operandi of HP system
Operating Lease & Financing lease
| Basis | Financing | Operating |
| Life of contract | ||
| Maintenance | ||
| Cancellation | ||
| Duration | ||
| Risk of obsolescence | ||
| cost of Assets |
HP & lease
| Basis | HP | Lease |
| Ownership | ||
| Down payment | ||
| Depreciation | ||
| Maintenance | ||
| Capitalization | ||
| Tax Benefit | ||
| Risk of obsolescence | ||
| Reporting |
HP & Installment Payment
| Basis | HP | Installment |
| Ownership | ||
| Call option |
Factoring
Types
- Recourse and non-recourse factoring
- Advance and maturity factoring
- Disclosed and undisclosed factoring
- domestic and export/cross border factoring
Function of factor
- Maintenance/administration of sales ledger
- collection of facility
- financing trade debts
- credit control and credit protection
- Advisory services
Advantage of factoring
- convertibility
- definite pattern of cash inflows
- Reduction in collection & administration costs
- Compensating balance are not required
Factoring and forfaiting
Functions of merchant banker
