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.
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