Tag: Non-banking Finance Companies
-
Guest Post: Nachiket Mor Committee Recommends Bank – NBFC Convergence
[Posted by Umakanth Varottil] [This post has been contributed by Shampita Das of Vinod Kothari & Company. The author may be contacted at shampita@vinodkothari.com] The Reserve Bank of India (RBI) in September, 2013 had set up a ‘Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households’, under the Chairmanship of Dr. Nachiket Mor,…
-
RBI makes 1000s of companies anxious by “Are you an unregistered NBFC?” notices
[Posted by Jayant Thakur] 0 0 1 618 3529 Jayant M. Thakur & Co., CAs 29 8 4139 14.0 96 Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:Calibri;} Over last week, Reserve Bank of…
-
FDI in NBFC Sector Relaxed
[Posted by Umakanth Varottil] 96 Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”;} Foreign direct investment (FDI) in non-banking finance companies (NBFCs) has been subject to minimum capitalisation norms. For example, any…
-
Dormant NBFCs under RBI scanner
[Posted by Satyajit Gupta] There are numerous NBFCs who have obtained registration from the RBI, parked their funds in fixed deposits with commercial banks but have not commenced NBFC activities for several years thereafter. In view of the recent difficulty in getting NBFC registrations as well as to get the benefit of lower net owned…
-
RBI Report on NBFC Norms
[Posted by Umakanth Varottil] Last week, a committee formed by the Reserve Bank of India (RBI) issued its report recommending changes to the manner in which non-banking finance companies (NBFCs) are regulated in India. A number of changes have been suggested to the operational norms governing NBFCs. These include capital adequacy requirements, liquidity ratio, asset…
-
The New Microfinance Institutions Bill
[Posted by Umakanth Varottil] Over the last year or so, there has been a serious debate about the nature of regulation governing the microfinance sector. In view of the debacle in Andhra Pradesh, the Reserve Bank of India (RBI) had appointed a committee under the chairmanship of Mr. Malegam to review issues pertaining to the…
-
More Hurdles for LLPs
[Posted by Umakanth Varottil] As we have previously noted on this Blog, the popularity of limited liability partnerships (LLPs) has not met with expectations since introduction of that business vehicle in April 2009. While the Government has taken certain steps to boost the utility of LLPs, such as by considering the possibility of foreign investment…
-
RBI: Regulatory Framework on Core Investment Companies
[Posted by Mihir Naniwadekar] An earlier post had discussed a Reserve Bank of India (RBI) proposal on regulation of Core Investment Companies; and had discussed the draft guidelines which the RBI had proposed. The RBI has now released the ‘Regulatory Framework for Core Investment Companies’. A Core Investment Company (CIC) is defined as being an…
-
Core Investment Companies – Draft RBI Guidelines
[Posted by Umakanth Varottil] (The following post has been contributed by Vijay Kumar, a lawyer and a company secretary by qualification, who is practising as an Advocate in the Chennai High Court with the law firm of Iyer and Thomas) Non – Banking Finance Companies have been classified as a. Asset Finance Company b. Investment…