NBFCs not to be Partners in Partnership Firms- Clarifications by RBI NBFCs were advised vide CC No. 214/03.02.002/2010-11 dated March 30, 2011 that they are prohibited from contributing capital to any partnership firm or to be partners in partnership firms. In cases of existing partnerships, NBFCs were advised to seek early retirement from the partnership firms. 2. In this connection certain clarifications are being made as given below; (a) Partnership firms mentioned above will also include Limited Liability Partnerships (LLPs). (b) Further, the aforesaid prohibition will also be applicable with respect to Association of persons; these being similar in nature to partnership firms. 3. Non-Banking Financial Companies which had already contributed to the capital of a LLP/Association of persons or was a partner of a LLP/Association of persons are advised to seek early retirement from the LLP/Association of persons. 4. Copies of Amending Notifications Nos. DNBS (PD).255 /CGM (CRS)-2013 and DNBS (PD).256 /CGM (CRS)-2013 both dated June 11, 2013 are enclosed for meticulous compliance.
Posted on: Wed, 24 Jul 2013 08:45:44 +0000
Trending Topics
Recently Viewed Topics
© 2015