ASSIGNMENT NO# 02

Submitted By:

Javeria Shafi Af-1355

Submitted To:

Sir Gulam Asghar

THE NON- BANKING FINANCE
Companies (Establishment and Regulations) Rules, 2003.

Summary of Section 5

Conditions for Grant of Licences

The Commission may provide licenses for one or more specific categories of businesses if all
or any of the following conditions are met. This condition is waived for directors who possess
qualifying shares representing less than 2% of the total share capital. The Firm hires a top
executive who does not hold such a position in any other company other than an investment
company managed by it. The Company, its founders and key shareholders, its Chief Executive
Officer, and its directors each individually promise to the Commission that they will comply
with the Regulation, these Rules, the Commission's instructions, and any subsequent
instructions. If a company does not begin operations within a reasonable amount of time

Summary of section 7

Conditions applicable to a NBFC

NBFCs must keep books of accounts and other records that provide a genuine and fair
picture of their financial situation. They must ensure that their statutory auditors are from
the Commission for Standards and Privileges' approveved list of auditors. Unlisted, on-
deposit taking lending facility. Another officer may be appointed as the NBFC's financial or
chief accountant. The internal auditor for the NBFC could be someone having a master's
degree in commerce or business administration with a concentration in finance. The National
Bank Financial Company (NBFC) must: Prepare financial statements that comply with
International Accounting Standards. [To be assigned to Schedule I] 57 was once eligible for a
rating under the rating criteria of a rating agency. NBFCs must apply for funding.