Necessity Spawns New Business Idea For Delhi Nbfc

The Reserve Bank of Indias directive to non-banking finance companies (NBFCs) to get themselves registered before July 8, 1997, has given birth to a new business.

Delhi-based Stanchart Finstreet Ltd has pioneered the business of advising NBFCs on how to get themselves registered with the central bank. The company also offers tips on how NBFCs can put their books in order. Needless to say, these services are very popular with the NBFCs, a majority of which are saddled with dubious accounts and are engaged in doubtful business practices.

An NBFC promoter who plans to avail of the companys services said: We do not want our accounts to be manipulated. But we want their help to plan our accounts to our advantage within the guidelines spelt out by the RBI. I would call it planning rather than manipulation.

 

Stanchart Finstreet company director Akhil Mangla said the company was formed last year by a group of chartered accountants, advocates and engineers. It offers diverse services including project finance and capital restructuring. But the foray into helping NBFCs register with the RBI is a relatively new one.

Mangla said the company has received overwhelming response from the NBFCs in the northern region since its first advertisement for the service appeared a fortnight ago. But we are being very choosy in selecting our clients, he added. Mangla said the cost of the service ranges between Rs 15,000 and Rs 30,000, but added that the company does not give any assurance that the job will finally be done.