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Authorized Share Capital of NSFDC ↑ to Rs. 1200 crore

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Government has given its stamp of approval to enhance the authorized share capital of the National Scheduled Castes Finance and Development Corporation (NSFDC) from Rs. 1000 crore to Rs. 1200 crore.

  • NSFDC is a Central Public Sector Enterprise (CPSE) working under the aegis of the Union Ministry of Social Justice and Empowerment.

Authorized Share Capital of NSFDC ↑ to Rs. 1200 croreWhy authorized share capital of NSFDC has been increased?
The Central Government has completely used up its contribution of authorized share capital of Rs. 1000 crore by paying Rs.998.13 crore to NSFDC. Hence, it became essential to enhance the Authorized Share Capital to expand its ambit of work.

Benefits of increase in authorized share capital of NSFDC:
It will act as a helping hand to twice the beneficiaries of Below Poverty Line (DPL) Scheduled Caste as the approval will expand the pool of funds available for economic activities, better coverage and enhanced outreach.

  • The target of NSFDC for the year 2015-16 is to cover 63,000 beneficiaries.

About National Scheduled Castes Finance and Development Corporation (NSFDC):
The NSFDC provides loans through its Channelizing Agencies at concessional interest rates for self-employment & economic development activities to its target group.

  • NSFDC also sponsors entrepreneurial training programmes to assist the unemployed members of scheduled castes self-employment.

What is authorized share capital?
A limit imposed by a company’s articles of association on the amount of capital a company can raise through the issuance of shares based on shares issued at par value. The limit can only be adjusted with the approval of the shareholders.