Harmonization of NBFC categories

DIPP unveils revised FDI policy

The Reserve Bank of India (RBI) issued a notification on 15 February 2019 merging asset finance companies, loan companies, and investment companies into a new category called non-banking finance company – investment and credit company (NBFC-ICC) based on the principle of regulation by activity rather than regulation by an entity. All related regulations shall stand amended accordingly. Further, the notification also stipulates that a deposit-taking NBFC-ICC shall be permitted to invest in unquoted shares of another company to an amount not exceeding 20% of its owned fund.

The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley, Munich and New York. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.