RBI issues notification to amend NBFC Prudential Norms Directions, 2007 NON-BANKING FINANCIAL (NON-DEPOSIT ACCEPTING OR HOLDING) COMPANIES PRUDENTIAL NORMS (RESERVE BANK) DIRECTIONS, 2007 - AMENDMENT IN PARA 20A NOTIFICATION NO.DNBS(PD).256/CGM (CRS) 2013, DATED 11-6-2013 The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as the said Directions), contained in Notification No. DNBS.193/DG(VL)-2007, dated February 22, 2007, in exercise of the powers conferred by Section 45JA and Section 45L of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with immediate effect as follows, 2. In para 20A, of the said Directions under the title, "NBFCs not to be partners in partnership firms", after sub-para (2) the following sub-para shall be inserted, namely:- "(3) In this connection it is further clarified that; (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. NBFCs 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.
Posted on: Fri, 14 Jun 2013 21:48:40 +0000
Trending Topics
Recently Viewed Topics
© 2015