12. Directions of the Board

the terms and conditions under which deposits may be accepted by such companies, the maximum rates of interest payable on such deposits, and the maximum period for which deposits may be accepted and the maximum amount that may be deposited with a company in the name of one person in one or more accounts;

the terms and conditions under which any loan, credit facility or any type of financial accommodation may be granted by such companies, the maximum rates of interest that may be charged on such loans, credit facilities or other types of financial accommodation, and the maximum periods for which any such loan, credit facility or other type of financial accommodation may be granted;

the maximum rates which may be paid to, or charged by, such companies by way of commissions, discounts, fees or other receipts or payments whatsoever;

the terms and conditions under which investments may be made by such companies;

the maximum permissible maturities for loans, credit facilities or other types of financial accommodation and investments made by such companies, and the nature and amount of the security that may be required or permitted for various types of lending, credit and investment operations;

the form and manner in which books of accounts or other records or documents are to be maintained by such companies;

the exclusion from the income of such companies in whole or in part, unpaid interest in respect of loans granted, if such loans have become overdue;

the minimum ratio which the liquid assets of such companies should bear to the total deposit liabilities of such companies;

the maintenance of cash balances by finance companies with the Central Bank if so required by the Board, and the minimum ratio of such cash balances should bear to the deposit liabilities of finance companies;

conditions which should be applicable to withdrawal by depositors of deposits before maturity;

prohibiting such companies from increasing the amount of their loans, credit facilities, other types of financial accommodation or investments;

fixing the limits to the rate at which the amount of any loans, investments or financial accommodation made or granted by such companies may be increased within specified periods;

requiring such companies to decrease the amount of their loans, investments or financial accommodation to specified limits within a specified period;

the maximum percentage of the share capital in a finance company which may be held –

by a company, an incorporated body, or an individual; and

in the aggregate by-

a company and one or more of the following:-

its subsidiary companies;

its holding company;

a subsidiary company of its holding company; or

a company in which such company or its subsidiary company, or its holding company, or a subsidiary company of its holding company has a substantial interest; or

an individual and one or more of the following:-

his relative;

a company in which he has a substantial interest or in which his relative has a substantial interest;

a subsidiary company of such company;

the holding company of such company;

a subsidiary company of such company’s holding company;

a company in which such company, or its subsidiary company, or its holding company, or a subsidiary of its holding company has a substantial interest; or

an incorporated body, other than a company, in which such individual or his relative has a substantial interest; or

companies in each of which an individual or a company as the case may be, has either directly, indirectly or beneficially a substantial interest or significant management interest;

the margins to be maintained by such companies in respect of secured accommodations;

restriction on the types of activities that may be carried on by finance companies;

payment to directors or employees of such companies by way of salary, allowance, perquisites, reimbursement of expenses, terminal benefits, gratuity and other superannuation payments;

the amount of core capital to be maintained by a finance company;

the academic and professional qualifications and experience required of directors, the chief executive officer and key management personnel of a finance company;

composition and the constitution of the quorum of the Board of Directors of such companies;

requirement for obtaining prior approval of the

requirement for obtaining prior approval of the

terms, conditions and procedures to be followed by such companies in the acquisition of real estate, and pricing thereof;

formation of subsidiary and associate companies by such companies;

submission of a bank guarantee by a finance company for such value and on such terms as may be determined by the Board to ensure the payment of any penalty that may be imposed by the Board under this Act.