Haryana to set up non-banking finance company

August 30, 2017 11:27 PM

Chandigarh August 30: Haryana Government has decided to establish “Haryana State Financial Services Limited”, a non banking financial company for management of surplus funds. 

While stating this here today, an official spokesman said that Chief Minister, Mr Manohar Lal has approved a proposal in this regard. 

He said that the company would be established as a limited company under the Companies Act and registered with Reserve Bank of India (RBI) as a Non Banking Finance Company. The authorized capital of the company would be Rs 10 crore and the paid up capital would be Rs one crore in the first instance. The entire equity of the Company would be held by the State Government, he added. He said that the Finance Department would be the Administrative Department of the Corporation.

He said that the initial requirement of funds for establishing the Company and salary of the core team would be approximately Rs two crores and this may be met through one time grant from the state exchequer. Subsequently, the company would be self sustaining and meet all its financial requirements from the spread earned from investment and management of surplus funds of State Public Enterprises.

He said that a consultancy organization would be hired for formulating the requisite documents for incorporation of a Non Banking Financial Company under the Companies Act, 2013, its registration with the Registrar of Companies as well as RBI and handling all other related matters. 

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