Upload
vutram
View
215
Download
0
Embed Size (px)
Citation preview
EquiCorp AssociatesAdvocates & Solicitors
NBFC Registration in IndiaNBFC Registration in India
www.equicorplegal.com
Indian Financial System
Financial Intermediaries Financial Markets FinancialAssets/Instruments
Banks NBFCMutualFunds
InsuranceOrganization
Money Market Capital/Securities MarketBanks NBFCMutualFunds
InsuranceOrganization
Leasing Companies
Hire-Purchase/Consumer FinanceCompanies
Housing Finance Companies
Venture Capital Funds
Merchant Banking Organization
Credit Rating Agencies
Factoring and Forfeiting Org.,
Stock broking firms
Depositories
Money Market Capital/Securities Market
Primary Market SecondaryMarket
Primary/Direct Indirect Derivatives
Leasing Companies
Hire-Purchase/Consumer FinanceCompanies
Housing Finance Companies
Venture Capital Funds
Merchant Banking Organization
Credit Rating Agencies
Factoring and Forfeiting Org.,
Stock broking firms
Depositories
Derivatives
Equity
Preference
Debentures
Innovative debtinstruments
Forward
Futures
OptionsConvertible Debentures
Non- ConvertibleDebentures
Secured Premium Notes
Warrants
Mutual Fund-units
Security Receipts
Pass ThroughCertificates
www.equicorplegal.com
Post-1991 Phase Organization of the IndianFinancial System
Privatization offinancialinstitution
Banks
Mutual-Fund
InsuranceCompanies
Reorganization of Structure
DFIs/PFIs Banks NBFCs Mutual-funds CapitalMarket
Money-Market
Privatization offinancialinstitution
Banks
Mutual-Fund
InsuranceCompanies
CapitalMarket
Money-Market
PrimaryStock-exchange
Investor Protection:
SEBI
Prudential Norms:
Credit/advanceportfolio
InvestmentPortfolio
Capital adequacy
Prudential Norms:
Credit/advanceportfolio
InvestmentPortfolio
Capital adequacy
ExposureNorms:
Securitisation,Asset
ReconstructionAnd Enforcement
Of SecurityInterest
Asset-LiabilityManagement Credit Risk
ManagementCountry RiskManagement
www.equicorplegal.com
Classification of NBFC’sEquipment
LeasingCompany
Residualnon banking
company
Mutualbenefit
financialCompany
Residualnon banking
company
Microfinance
companies/institutions
LoanCompany
Mutualbenefit
financialCompany
Microfinance
companies/institutions
Hirepurchasefinance
company
Investmentcompany
LoanCompany
www.equicorplegal.com
Classification of NBFC’s
Asset Finance Companies Investment Companies
NBFC since2006
Loan Companies Infrastructure FinanceCompanies
www.equicorplegal.com
Can NBFC receivedeposit???????
A non-banking institution which is a companyand which has its principal business ofreceiving deposits under any scheme orarrangement or any other manner, or lending inany manner is also a non-banking financialcompany (Residuary non-banking company).
A non-banking institution which is a companyand which has its principal business ofreceiving deposits under any scheme orarrangement or any other manner, or lending inany manner is also a non-banking financialcompany (Residuary non-banking company).
www.equicorplegal.com
Category A NBFCA companyincorporated under theCompanies Act, 1956and desirous ofcommencing businessof non-banking financialinstitution
It is mandatory thatevery NBFC should beregistered with RBI tocommence or carry onany business of non-
banking financialinstitution as defined inclause (a) of Section 45 I
of the RBI Act, 1934.
A companyincorporated under theCompanies Act, 1956and desirous ofcommencing businessof non-banking financialinstitution
1. The Company should havea minimum net owned fund ofRs 5 crore. ( & Rs. 2 crore fornorth eastern states)2. The company is required tosubmit its application forregistration in the prescribedformat along with necessarydocuments for RBI’sconsideration
It is mandatory thatevery NBFC should beregistered with RBI tocommence or carry onany business of non-
banking financialinstitution as defined inclause (a) of Section 45 I
of the RBI Act, 1934.
RBI issues Certificate ofRegistration after satisfyingitself that the conditions aresatisfied
www.equicorplegal.com
For RBI Registration- CategoryB NBFC
PRUDENTIAL
NORMS
PRUDENTIAL
NORMS
PRUDENTIAL
NORMS
www.equicorplegal.com
Registration Process
1. Application for Registration in theprescribed Form containing:- Identification Particulars,- Capital Funds & Risk Assets,- Information on Management.
2. MOA, AOA, Board Resolution,Accounts and Business Plan.
1. Application for Registration in theprescribed Form containing:- Identification Particulars,- Capital Funds & Risk Assets,- Information on Management.
2. MOA, AOA, Board Resolution,Accounts and Business Plan.
1. Application for Registration in theprescribed Form containing:- Identification Particulars,- Capital Funds & Risk Assets,- Information on Management.
2. MOA, AOA, Board Resolution,Accounts and Business Plan.
www.equicorplegal.com
Registration Process-vetting
Management Background BOD Executive Funding
Track record of other NBFCs in the groupCR from BankersInterview of promoters/directorsDefinitive business planAuditor’s certificate
Management Background BOD Executive Funding
Track record of other NBFCs in the groupCR from BankersInterview of promoters/directorsDefinitive business planAuditor’s certificate
Management Background BOD Executive Funding
Track record of other NBFCs in the groupCR from BankersInterview of promoters/directorsDefinitive business planAuditor’s certificate
www.equicorplegal.com
Registration Process- rejection &appeal
Appeal against the RBI Order rejecting the Application to theCentral Government, Ministry of Finance
1. To dispose of financial assets within 3 years from date ofrejection/cancellation.
2. If deposit taking –i) repay deposits andii) report outstanding position on monthly basis (NBS-4)
3. Take up Other objects & change the name
4. Voluntary winding up
Appeal against the RBI Order rejecting the Application to theCentral Government, Ministry of Finance
1. To dispose of financial assets within 3 years from date ofrejection/cancellation.
2. If deposit taking –i) repay deposits andii) report outstanding position on monthly basis (NBS-4)
3. Take up Other objects & change the name
4. Voluntary winding up
Appeal against the RBI Order rejecting the Application to theCentral Government, Ministry of Finance
1. To dispose of financial assets within 3 years from date ofrejection/cancellation.
2. If deposit taking –i) repay deposits andii) report outstanding position on monthly basis (NBS-4)
3. Take up Other objects & change the name
4. Voluntary winding up
www.equicorplegal.com
Continuance of business ofNBFC
- Certificate from statutory auditors to besubmitted to RBI every year.
- Confirming that it continue to undertakebusiness of NBFI and therefore requires tohold CoR granted by RBI.
- Certificate from statutory auditors to besubmitted to RBI every year.
- Confirming that it continue to undertakebusiness of NBFI and therefore requires tohold CoR granted by RBI.
- Certificate from statutory auditors to besubmitted to RBI every year.
- Confirming that it continue to undertakebusiness of NBFI and therefore requires tohold CoR granted by RBI.
www.equicorplegal.com
Change in control/managementof a NBFC
For all NBFCs:
public notice 30 days before effecting the sale or transfer,
in two newspapers one English and local vernacularlanguage,
jointly by NBFC, transferor and transferee,
within seven days of publication, intimation to RBI
For Deposit Accepting NBFCs
- Prior approval of RBI
- Obligation towards deposit holders
For all NBFCs:
public notice 30 days before effecting the sale or transfer,
in two newspapers one English and local vernacularlanguage,
jointly by NBFC, transferor and transferee,
within seven days of publication, intimation to RBI
For Deposit Accepting NBFCs
- Prior approval of RBI
- Obligation towards deposit holders
For all NBFCs:
public notice 30 days before effecting the sale or transfer,
in two newspapers one English and local vernacularlanguage,
jointly by NBFC, transferor and transferee,
within seven days of publication, intimation to RBI
For Deposit Accepting NBFCs
- Prior approval of RBI
- Obligation towards deposit holders
www.equicorplegal.com
Concerned Areas A large number of NBFCs are working without
registration:
Companies working without registration and
Companies rejected by RBI still operating.
Penalties: Imprisonment 1 to 5 years and Fine of Rs. 1 lakh to 5 lakhs.
A large number of NBFCs are working withoutregistration:
Companies working without registration and
Companies rejected by RBI still operating.
Penalties: Imprisonment 1 to 5 years and Fine of Rs. 1 lakh to 5 lakhs.
A large number of NBFCs are working withoutregistration:
Companies working without registration and
Companies rejected by RBI still operating.
Penalties: Imprisonment 1 to 5 years and Fine of Rs. 1 lakh to 5 lakhs.
www.equicorplegal.com
RBI Registration: Value Addition
Briefing Client
Filling in Relevant Applications
Extensive Experience
Value Addition byECA
Stage
Short Turn-around timeFilling in Relevant Applications
Filing Applications with the RBI/ROC
Obtaining client approval for the completedapplications
In-depth Understanding
Professional Expertise
Short Turn-around time
Liaisoning
Obtaining the Registration
Reliable contacts
High success rate
Continued SupportFiling Returnswww.equicorplegal.com
Consult the Experts-ECA
There can be different structures for raisingfunds from Public or giving loans, however,company should look into the options whichis best suited for their business.
To know the further details aboutNBFC/MFI/Nidhi Company and other legalaspects of financial institutions, contact us [email protected]
There can be different structures for raisingfunds from Public or giving loans, however,company should look into the options whichis best suited for their business.
To know the further details aboutNBFC/MFI/Nidhi Company and other legalaspects of financial institutions, contact us [email protected]
www.equicorplegal.com
Equi Corp Associates, Advocates & Solicitors1st Floor, NBBC, Inox Towers, Tower-B, Plot No.17,
Sector-16 A, Film City, Noida-201301T: +91 1204797509
Mobile: +919958709189E-mail: [email protected]
Website: www.equicorplegal.com/ www.corporatelawyersdelhi.comBlog: http://equicorplegal.blogspot.in/
Equi Corp Associates, Advocates & Solicitors1st Floor, NBBC, Inox Towers, Tower-B, Plot No.17,
Sector-16 A, Film City, Noida-201301T: +91 1204797509
Mobile: +919958709189E-mail: [email protected]
Website: www.equicorplegal.com/ www.corporatelawyersdelhi.comBlog: http://equicorplegal.blogspot.in/