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ARTICLE · 14 JANUARY 2015

RBI Approval Over M&A For NBFC

Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
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Mansukhlal Hiralal & Company

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Reserve Bank of India (RBI) recently came out with a notification (New Notification) that will increase its regulatory oversight on the non-banking financial company (NBFC) sector.

IndiaFinance and Banking
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
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Reserve Bank of India (RBI) recently came out with a notification (New Notification) that will increase its regulatory oversight on the non-banking financial company (NBFC) sector. The RBI through the New Notification mandated the requirement of its prior written approval in cases of acquisition or transfer of control of NBFCs. This is not the first time the RBI has issued directions for its prior written permission on such takeovers of NBFCs. Back in September 2009, it had issued similar notification, albeit restricted to NBFCs accepting deposits. However, the New Notification proves to be a significant expansion in its regulatory regime.

According to the New Notification, the prior written permission of the RBI shall be required for:

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