UNIVERSITY OF MUMBAI

PROJECT ON
NBFC IN INDIAN FIANCIAL MARKET
BACHELOR OF COMMERCE

Financial Market

Semester V

(2017-2018)

SUBMITTED
In partial Fulfillment of the requirement for the

Award of Degree of Bachelor of Commerce – Financial Market.

SUBMITTED BY,
SHAILI KAUSTUBH GAWDE

ROLL NO. - 12

UNDER GUIDANCE,
PROF. PRIYANKA PRASAD.

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE &

COMMERCE PAREL, MUMBAI – 400 012.
 MAHARSHI DAYANAND COLLEGE
OF ARTS, SCIENCE & COMMERCE
PAREL, MUMBAI – 400 012.

CERTIFICATE

This is to certify that SHAILI KAUSTUBH GAWDE. of B.Com

(Financial Market) Semester V (2017-2018) has successfully
completed the project on NBFC IN INDIAN FINANCIAL
MARKET under the guidance of PROF. PRIYANKA PRASAD.

Course Coordinator Principal

Project Guide/Internal Examiner External Examiner

 DECLARATION

I am MRS. SHAILI KAUSTUBH GAWDE The student of B. com

(Financial Market) Semester V (2017-2018) hereby declares that I
have completed the Project on NBFC IN INDIAN FINANCIAL
MARKET. The information submitted is true and original to the best
of my knowledge.

Signature of student

Name of Student

MRS. SHAILI KAUSTUBH GAWDE

Roll No. 12
 ACKNOWLEDGEMENT

The college, the faculty, the classmates & the atmosphere, in the
college were all the favorable contributory factors right from the point
when the topic was to be selected till the final copy was prepared. It
was a very enriching experience throughout the contribution from the
following individuals in the form in which it appears today. We feel
privileged to take this opportunity to put on record my gratitude
towards them.
PROF. KUNAL SONI SIR made sure that the resource was made
available in time & also for immediate advice & guidance throughout
making this project. The principal of our college DR. T.P.GHULE and
our Vice-Principal Mrs. SANJEEVANI PHATAK has always been
inspiring & driving force. We are thankful to Mr. SANTOSH
SHINDE associated with administration part of Financial Markets &
Banking & Insurance section has been very helpful in making the
infrastructure available for data entry.
 CONTENTS

CHAPTER PAGE
TOPIC
NO NUMBER

1 Introduction 1

2 History of NBFC in India 7

3 Objective of NBFC 11

4 Importance of NBFC in India 14

5 Research Methodology 16

6 Types of NBFC 18

7 Frauds in NBFC 21

8 Role of NBFC in Indian Financial Market

32

Advantage and Disadvantage of NBFC in Indian

9 36
Financial Market

10 Conclusion 38

11 Webliography 40
 EXECUTIVE SUMMARY

India growth story is most talked about and why not? The country’s GDP is
pegged to grow at a rate of more than 7.5%. India’s Stock market has given the
best returns in the last 6-8 months of more than 60%. The household savings
continues to be as high as 35% in spite of slowdown and recessionary pressures.
Forex reserves have increased by more than 10billion $ in the 1 st quarter and the
total reserves are up, to 262 billion $. Current Budget focuses on reducing fiscal
deficit by the measures of disinvestments and improving the infrastructure of the
country. Overall the country is all set to grow at a rapid pace and the government
has laid a strong foundation for this. Having realized this, one can strongly say
that sufficient liquidity has to be maintained in the system to enhance credit and
economic growth.

NFBIs (Non Banking Financial Institutions) play an important role in realizing

the economic growth. They have access to larger markets and provide financing
for almost all activities.

Think of buying an automobile, and one will find financing companies that
provide EMIs at the doorstep. Think of buying any electronics, one would be
amazed the number of financing companies that one can approach to make a deal.
Thus the competitiveness of the companies combined with fierce penetration
across the length of the country enables NBFIs to grow at a rapid pace.

In the following document, NBFIs in India are discussed with a focus on NBFCs.
The total assets managed by NBFCs amount to 95,727 crore as on June 2009.
This accounts for around 9.1 % of assets of the total financial system [1]. Hence
the business carried out by NBFCs is of great importance for overall development
of the country. Thus RBI is implementing various schemes and policies for
maintaining enough liquidity for funding requirements. Also various regulations
are levied on NBFCs for making the overall system robust.