Ram and Shyam, two brothers, are professionally qualified Chartered Accountants. They are engaged in working as recovery agents for different types of loans and advances given by banks to different customers. They were also involved in arrangement of short terms funds for their clients. Their business was doing well and they were making a good amount of money. While dealing with banks they came to know about Asset Reconstruction Companies (ARCS). Both the brothers wanted to expand their business, so they decided to register themselves as ARC. From following tick, the option which is irrelevant in respect of their ARC business: –
The net owned fund of their ARC should not be less than One hundred lacs rupees.
The net owned fund of their ARC should not be less than One hundred crore rupees
After registering as an ARC they will no longer be eligible to continue their business of arranging short term funds for their clients.
They will be required to raise funds only from qualified buyers.