MCA has observed that various section 8 companies are altering their object clause for carrying out the business of micro finance activities. Earlier, MCA vide direction letter no. No. 05/33/20 dated 10-02-2020 prohibited the inclusion of micro finance activities in object clause of Section-8 Company unless the Net Owned Fund (NOF) and other requirement as laid down by RBI are complied with. Now, ROCs are immediately directed to prevent such companies from carrying out micro finance activities.MCA has observed that various section 8 companies are altering their object clause for carrying out the business of micro finance activities. Earlier, MCA vide direction letter no. No. 05/33/20 dated 10-02-2020 prohibited the inclusion of micro finance activities in object clause of Section-8 Company unless the Net Owned Fund (NOF) and other requirement as laid down by RBI are complied with. Now, ROCs are immediately directed to prevent such companies from carrying out micro finance activities.taxmann.com Latest Statutory HappeningsRead More
