Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: due date for vat payment :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: form 3cd
 
 
« Latest Circulars »
 Monitoring of Foreign Investment under PIS in Indian Companies- Removal from Ban List - FIIs/RPIs : M/s IDFC Limited
 FIIs/FPIs can now invest 24 to 49 per cent under PIS in M/s Satin Creditcare Network Limited
  Bankers & SME Borrowers: The Emerging Mantras (Shri S. S. Mundra, Deputy Governor – June 16, 2017 – at the 3rd Bankers Borrowers Business Summit organized by ASSOCHAM in New Delhi1)
 RBI extends Directions issued to Navodaya Urban Co-operative Bank Ltd, Nagpur, Maharashtra
 Developments in India’s Balance of Payments during the Fourth Quarter (January-March) of 2016-17
 Bankers & SME Borrowers: The Emerging Mantras (Shri S. S. Mundra, Deputy Governor – June 16, 2017 – at the 3rd Bankers Borrowers Business Summit organized by ASSOCHAM in New Delhi1)
 RBI-Formation of a new district in the State of West Bengal - Assignment of Lead Bank Responsibility
 RBI-Period for Submission of Agency Commission Claims
  Master Direction - Information Technology Framework for the NBFC Sector
  Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit Rating Agencies – INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)
 Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit Rating Agencies – INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)

RBI-Registration of Non-Operative Financial Holding Companies (NOFHCs)
April, 08th 2014

RBI/2013-14/558
DNBS (PD).CC.No. 374/03.10.001/2013-14

April 07, 2014

To Concerned Financial Institution

Dear Sirs,

Registration of Non-Operative Financial Holding Companies (NOFHCs)

Please refer to the ‘Guidelines for Licensing of New Banks in the Private Sector’ dated February 22, 2013 issued by Department of Banking Operations and Development (DBOD), vide RBI Press Release 2012-2013/1421 of the same date. The Guidelines inter alia, state that promoter / promoter groups will be permitted to set up a new bank only through a wholly-owned Non-Operative Financial Holding Company (NOFHC)1 which will hold the bank as well as all other financial services companies regulated by RBI or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions. While the NOFHC will be registered as a non-deposit taking non-banking financial company (NBFC) with the Department of Non-Banking Supervision (DNBS) of the Reserve Bank, the regulatory and supervisory framework of NOFHC including prudential norms and submission of returns will be governed by the instructions issued by DBOD from time to time.

2. Accordingly, it has been decided to create a separate category of NBFCs, viz., Non-Operative Financial Holding Company (NOFHC).

3. The Notification amending the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is enclosed for meticulous compliance.

4. A company seeking registration as an NOFHC shall first have received an in-principle approval for setting up a commercial bank from the Reserve Bank. The application for registration of NOFHC shall be made with the requisite information and documents to Reserve Bank of India, DBOD, Central Office, 12th Floor, Shahid Bhagat Singh Road, Mumbai. The Certificate of registration for the NOFHC will be issued by DNBS, Reserve Bank of India.

Yours faithfully,

(N S Vishwanathan)
Principal Chief General Manager


RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005

Notification No. DNBS. (PD) 274 / CGM(NSV)-2014 dated April , 2014

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 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.

1. Insertion of new clause (viii c) in Paragraph 2(1):

In Paragraph 2, in sub-paragraph (1), after clause (viii b), the following clause (viii c) shall be inserted:

“(viii c) Non-Operative Financial Holding Company (NOFHC) means a non-deposit taking NBFC referred to in the “Guidelines for Licensing of New Banks in the Private Sector”2 issued by Reserve Bank, which holds the shares of a banking company and the shares of all other financial services companies in its group, whether regulated by Reserve Bank or by any other financial regulator, to the extent permissible under the applicable regulatory prescriptions”.

2. Insertion of new sub-paragraph (3) in Paragraph 18:

In paragraph 18, a new sub-paragraph (3) shall be added after sub-paragraph (2) as follows:

“(3) An NBFC which is held by an NOFHC shall not

  1. have any exposure (credit and investments including investments in the equity / debt capital instruments) to the Promoters / Promoter Group entities or individuals associated with the Promoter Group or the NOFHC;
  2. make investment in the equity / debt capital instruments in any of the financial entities under the NOFHC;
  3. invest in equity instruments of other NOFHCs.

Explanation:- For the purposes of this Paragraph, the expression, ‘Promoter’ and ‘Promoter Group’ shall have the meanings assigned to those expressions in Annex 1 to the “Guidelines for Licensing of New Banks in the Private Sector” issued by Reserve Bank.”

(N.S.Vishwanathan)
Principal Chief General Manager


1NOFHC is a non-deposit taking NBFC as defined in the RBI Press Release 2012-2013/1421  dated February 22, 2013.

2 http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=28191

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions