Change in shareholding and management in NBFC

[reema chaurasia]

Dear Members,

Can anyone please confirm that at the time of change in shareholding of NBFC An applicable NBFC, shall require prior written permission of the Bank for the following:
b) any change in the shareholding of the applicable NBFCs, including progressive increases over time, which would result in acquisition / transfer of shareholding of 26 per cent or more of the paid-up equity capital of the applicable NBFC
what does progressive increases over time means? What time frame do we take in case of transfer of shares of 26% or more?

Does resignation of Director also require prior approval of RBI?

At the time of the 50:50 test of Financial assets and income generated from Financial Income, should it be checked at the end of the financial year or any time during the year?

Please confirm.

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Regards

CS Reema

9811866236

[RAJIV KUMAR SHARMA]

1. yes prior approval need if changes > 26%. Progressive change meaning. initial shareholding 10%, later shareholding increased by 18%. now effective total shareholding 28% (> 26%). you will need prior approval. No time frame for transfer. You need to take prior approval as soon as it crosses 26%.

2. Resignation of director does not require RBI prior approval. but submit DIR-12 post resignation.

3. 50:50 test must pass during any day of the year. But mostly NBFC maintains 50:50 only at the year end.

Hope this will hep.

Regards,

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