A non-banking financial company (NBFC) is a type of financial institution that offers a variety of financial services, but does not hold a banking license.

Option 1 and 2 state, respectively, that NBFCs cannot give loans or make investments. However, both of these assertions are incorrect. NBFCs can indeed lend money and make investments; in fact, these activities are often a substantial part of their business operations.

Option 3 asserts that NBFCs cannot borrow from banks, this is also incorrect. NBFCs can, and often do, borrow from banks as a part of their operations.

Option 4, the correct answer, says that NBFCs cannot seek demand deposits from the public and cannot issue cheques. This is indeed the case. NBFCs don`t have the same powers as banks, they cannot accept demand deposits (deposits repayable on demand) from the public or provide cheque-book facilities to their customers as they are not part of the payment and settlement system. Demand deposits and cheque issuing are functions reserved for commercial banks.