Sec 186 (11) of Companies Act, 2013

[Aditya Saha]

Dear Members,

Can a Real estate developing company provide loan to any company by virtue of Sec. 186(11) of CA, 2013 r/w Schedule VI of CA, 2013?

Its mentioned there that :

Exemption to Sec. 186 shall be given except Subsection (1) :

to a loan made, guarantee given or security provided by a banking company or an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or of providing infrastructural facilities.

My Query is : if it is so then there is no requirement of forming NBFC Companies. We can simply form a Real Estate company and can provide loans to different companies.   

Thanks and Regards,

CA Aditya Saha

Mob. No.: 9432640110