Master Circular for NBFCs
This circular outlines the guidelines for Non-Banking Financial Companies (NBFCs) to open branches, subsidiaries, joint ventures, or representative offices abroad, or undertake investments outside India.
Key Requirements:
NBFCs need to obtain a No Objection Certificate (NoC) from the Department of Non-Banking Supervision (DNBS), RBI, before making any overseas investment.
The RBI’s prior approval is mandatory for NBFCs to open branches, subsidiaries, joint ventures, or representative offices abroad, or undertake investments outside India.
General Conditions:
NBFCs must comply with the Non-Banking Financial Companies (Opening of Branch/Subsidiary/Joint Venture/Representative Office or Undertaking Investment Abroad by NBFCs) Directions, 2011.
Specific Conditions:
Different conditions apply for:
- Opening of Branch: Specific requirements for opening a branch abroad.
- Opening of Subsidiary: Conditions for opening a subsidiary abroad by NBFCs.
- Joint Ventures: Guidelines for joint ventures abroad.
- Opening of Representative Offices: Requirements for opening representative offices abroad by NBFCs.
Appendix:
A list of circulars related to the guidelines is provided in the appendix.
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