Legal UpdatesRBI

RBI introduces NBFC – Investment and Credit Company by harmonising 3 categories of NBFCs

RBI Updates

RBI has decided to merger three categories of NBFCs viz. Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs) into a new category called NBFC – Investment and Credit Company (NBFC-ICC).RBI further states that the deposit that would be taken by NBFC-ICC would be allowed to invest in unquoted shares of another company which is not a subsidiary company or a company in the same group of the NBFC, an amount not exceeding 20% of its owned fund.
The above mentioned decision has been taken as the paragraph 5 of the Statement on Developmental and Regulatory Policies of the Sixth Bi-monthly Monetary Policy Statement for 2018-19 dated February 07, 2019 on Harmonisation of NBFC Categories.
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