Dear All,
Is it necessary that every NBFC should be registered with RBI? and
What are the requirements for registration with RBI?
please help me.
A V Vishal (Advocate) 15 June 2009
Dear Sunil
It is absolutely necessary for a NBFC to get registered and get a certificate wrt the working of such an institution, else it will get embroiled in a legal tangle.
1.
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Minimum NOF requirement Rs. 200 lakh.
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2.
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Application to be submitted in two separate sets tied up properly in two separate files.
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3.
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Annex II to be submitted duly signed by the director/Authorized signatory and certified by the statutory auditors.
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4.
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Annex III (directors’ profile) to be separately filled up for each director. Care should be taken to give details of bankers in respect of firms/companies/entities in which directors have substantial interest.
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5.
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In case the directors are associated or have substantial interest in other companies, indicate clearly the activity of the companies (whether NBFC or not).
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6.
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Board Resolution specifically approving the submission of the application and its contents and authorising signatory.
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7.
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Board Resolution to the effect that the company has not accepted any public deposit, in the past (specify period)/does not hold any public deposit as on the date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.
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8.
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Board resolution stating that the company is not carrying on any NBFC activity/stopped NBFC activity and will not carry on/commence the same before getting registration from RBI.
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9.
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Auditors Certificate certifying that the company is/does not accept/is not holding Public Deposit.
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10.
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Auditors Certificate certifying that the company is not carrying on any NBFC activity.
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11.
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Net owned fund as on date.
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12.
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Certifying compliance with section 45S of Chapter IIIC of the RBI Act, 1934 in which director/s of the company has substantial interest.
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13.
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Details of changes in the Memorandum and Articles of Association duly certified.
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14.
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Last three years Audited balance sheet along with directors & auditors report.
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15.
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Details of clauses in the memorandum relating to financial business.
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16.
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Details of change in the management of the company during last financial year till date if any and reasons thereof.
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17.
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Details of acquisitions, mergers of other companies if any together with supporting documents.
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18.
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Details of group companies/associate concerns/subsidiaries/holding companies.
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19.
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Details of infusion of capital if any during last financial year together with the copy of return of allotment filed with Registrar of Companies.
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20.
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Details of the bank balances/bank accounts/complete postal address of the branch/bank, loan/credit facilities etc. availed.
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21.
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Business plan for next three years indicating market segment to be covered without any element of public deposits.
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22.
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Cash flow statement, asset/income pattern statement for next three years.
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23.
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Brief background note on the activities of the company during the last three years and the reasons for applying for NBFC registration.
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24.
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II(b) is the company engaged in any capital market activity? If so, whether there has been any non-compliance with SEBI Regulations? (Statement to be certified by Auditors).
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25.
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Whether any prohibitory order was issued in the past to the company or any other NBFC/RNBC with which the directors/promoters etc. were associated? If yes, details there of.
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26.
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Whether the company or any of its directors was/is involved in any criminal case, including under section 138(1) of the Negotiable Instruments Act? If yes, details thereof.
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27.
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Whether the company was granted any permission by ECD to function as Full-fledged Money Changers?
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28.
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Whether the company was/is authorised by ECD to accept deposits from NRIs.
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29.
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Whether “Fit and Proper” Norms for Directors have been fulfilled.
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