Nahar Capital and Financial Services (NCFSL), a Nahar Group of company was incorporated on March 31, 2006. The company was incorporated for the purpose of taking over the investment business of Nahar Spinning Mills Limited as per the scheme of demerger and arrangement duly approved by Hon’ble Punjab and Haryana High Court, Chandigarh as per order dated 21st December, 2006. The scheme is effective from 1-4-2006.
The said order is subject to NCFSL obtaining the Certificate of Commencement of Business from Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh and also registration from the Reserve Bank of India as Non Banking Financial Company (NBFC) within six months from the said order, failing which the scheme of arrangement shall be revoked to the extent applicable in respect of NSML and NCFSL.
The said order allows the transfer of the investment business of NSML to NCFSL and the allotment of equity shares of the company to the shareholders of NSML as laid down in the scheme The aforesaid order of the Hon’ble High Court of Punjab & Haryana at Chandigarh High Court was filed by NCFSL with the Registrar of Companies (ROC), Punjab, Himachal Pradesh and Chandigarh on January 12, 2007, which is the effective date of the scheme. Pursuant to Sections 391 to 394 of the Companies Act, 1956 the entire investment business of NSML has been transferred to and vested in the NCFSL w.e.f. April 1, 2006 (the appointed date under the scheme).
In accordance with the said scheme, the equity shares of the company issued pursuant to scheme as well as its existing shares issued for the purpose of incorporation shall, subject to applicable regulations, be listed and admitted to trading on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). Such listing and admission for trading is not automatic and will be subject to fulfillment by the NCFSL of listing criteria of BSE and NSE for such issues and also subject to such other terms and conditions as may be prescribed by BSE and NSE at the time of the application by the NCFSL seeking listing.
By demerging the investment business of NSML and registering it as non banking finance company, new activities such as finance consultancy, merchant banking, underwriting business, stock broking, Inter Corporate Lending, and other misc. finance activities generally done by the NBFC will be undertaken.
Business area of the company: NCFSL has been registered as non banking finance company (NBFC) mainly to carry out the existing Investment business transferred from NSML i.e. the business of Investment in Sshares, debentures, stock, bonds and securities of any kind issued by companies, banks, mutual funds, any authority, central, state, municipal, local and to invest subscribe, purchase, acquire and/or sell or otherwise place funds by way of deposit to any body corporate, firm, person, any other authority or association whether falling under the same management or otherwise, in accordance with and to the extent permissible under the applicable provisions of the Companies Act 1956 with or without security and on such terms as may be determined from time to time.
NCFSL may also undertake new activities in future such as financial consultancy, merchant banking, underwriting business, stock broking, and other miscellaneous finance activities generally undertaken by the NBFC’s after obtaining the requisite approvals.