In financial and corporate terminology, a non-trading company kept dormant or used as a vehicle for various financial manoeuvres is known as what?

Introduction / Context:
This question is about financial terminology, especially in the context of corporate structures used for legal or illegal financial manoeuvres. In recent years, the term “shell company” has appeared frequently in news related to tax evasion, money laundering and corporate investigations. Understanding what a shell company is helps in interpreting such news and is therefore a common topic in banking and general awareness exams.

Given Data / Assumptions:

• The description refers to a non trading company.
• It is often kept dormant or used primarily as a vehicle for financial manoeuvres, rather than actual business operations.
• Options include chit funds, shell companies, Nidhi companies and indigenous bankers.
• We assume standard usage of these terms in finance and law.

Concept / Approach:
A shell company is typically an entity that has little or no active business operations or tangible assets. It may be used merely as a legal vehicle to hold assets, transfer funds or conduct complex transactions, sometimes legitimately but often for concealment or avoidance purposes. The other options denote different financial institutions or structures with active roles. Matching the description to the proper concept quickly points to shell companies as the correct answer.

Step-by-Step Solution:
Step 1: Examine the description: a non trading company, kept dormant or used only as a vehicle for financial manoeuvres.Step 2: Recognise that this matches the common definition of a shell company, which may exist on paper with minimal operations.Step 3: Chit funds are rotating savings and credit schemes, where members contribute and take turns receiving pooled amounts, which involves active financial operations.Step 4: Nidhi companies are non banking finance companies recognised under Indian law that borrow and lend money among members, again actively trading in financial services.Step 5: Indigenous bankers are traditional money lenders or bankers who carry on banking business in an informal setting.Step 6: Only shell companies fit the description of being non trading and often dormant.

Verification / Alternative check:
Definitions used by regulators and investigative agencies describe shell companies as entities without significant assets or operations, sometimes formed solely to raise capital, hold assets or transfer funds. Media reports on crackdown on shell companies emphasise their use for routing unaccounted money. None of the other options are described in this way, confirming that shell companies is the correct term.

Why Other Options Are Wrong:
Chit funds: These involve active participation by members in savings and loan activities, not mere dormant existence.

Nidhi companies: Registered entities focused on mutual benefit of members through borrowing and lending, actively engaged in financial transactions.

Indigenous bankers: Individuals or groups engaged in traditional banking operations such as lending money, again not dormant paper entities.

Because these all involve active business, they do not match the description in the question.

Common Pitfalls:
Candidates may confuse shell companies with Nidhi companies or other financial intermediaries if they have not carefully learned the definitions. Another mistake is focusing only on the negative news associated with shell companies and forgetting the basic definition. A helpful strategy is to remember that a shell company is essentially “a shell without substance” in terms of operations, which makes the term easy to recall.

Final Answer:
A non trading, often dormant company used as a vehicle for financial manoeuvres is called a shell company.