Other Considerations

Financial Inclusion Initiatives : NBFCs should also consider contributing to financial inclusion by offering products like microfinance, affordable housing finance, or other services to underserved sections of society.
Corporate Governance : Ensure high standards of corporate governance to protect shareholder interests and maintain compliance with the Companies Act.

PERIODIC COMPLIANCE:

DNBS (Department of Non-Banking Supervision) returns are essential for compliance and regulatory reporting for NBFCs. The exact set of returns and their frequency depend on whether the NBFC is deposit-taking, its asset size, and specific activities. Non-compliance can attract significant regulatory penalties.

APPLICABLE NORMS:

The operations and compliance requirements of the company are governed by the following statutory and regulatory provisions:

The Reserve Bank of India Act, 1934
The Companies Act, 2013 and the rules framed thereunderThe Income Tax Act, 1961
RBI Scale Based Regulatory Framework for NBFCs – Base Layer Guidelines, 2023
Relevant notifications, circulars, and directions issued by the Reserve Bank of India from time to time

CHANGE IN MANNAGMENT AND CONTROL

As per Paragraph 42.1.1 (iii) of the RBI Master Directions on Non-Banking Financial Company – Scale Based Regulation, 2023, prior approval from the Reserve Bank of India is mandatory in case of any change in the management of the NBFC that results in a change of more than 30% of the directors, excluding independent directors.

All such changes are applied through PRAVAAH portal which is to provide a single, centralized, digital platform where entities can:

Submit applications for various regulatory permissions
Track the status of their applications in real-time
Receive approvals / clarifications / deficiency letters from RBI digitally.

Other Considerations

Spar & Affiliates LLP

Startup

GST

Office

Other Considerations

Related Services:

Registration with RBI as NBFC

CKYC (Central KYC)

CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India)

Other Considerations

Spar & Affiliates LLP

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