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CH-6: TOPIC – RESOURCE MOBILIZATION

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SFCs

The main objectives of the S.F.C are to provide financial assistance to medium and small scale industries
which are outside the scope of I.F.C.I. The main function of S.F.C. is limited within its states.

The SFC's statutory objectives are to maintain and promote fairness, efficiency, competitiveness, and
transparency in the securities and futures markets; promote public understanding of investing and
corporate finance policy; protect investors by enforcing regulations; reduce crime and misconduct and
reduce the risks .

Functions Of SFC:

The main functions of S.F.C. are as follows:

1. It grants loan and advances to industrial concerns that are repayable within the maximum
period of 20 years.

2. It subscribes the shares and debentures of industrial concerns.

3. It underwrites the shares and debentures of the industrial concerns.

4. It guarantees loans raised by the industrial concerns repayable within 20 years.

5. Guarantees deferred payments for purchase of capital goods with India.

6. It acts as an agent of the State and central Government.

SIDC

The full form of SIDC states industrial development corporation. The main objective of
establishing SIDC was to increase the process of industrialization in India. Also, it is considered as one of
a financial institution to be established in India.