>>NON-BANKING FINANCE COS - NOTIFICATION
Reserve Bank of
India
Department of Non-Banking Supervision
Central Office
Centre 1, World Trade Centre
Cuffe Parade, Colaba
Mumbai – 400 005
Contents
Notification No.DNBS. 154/CGM (LMF) -2002 dated January
1, 2002
Notification No.DNBS. 155/CGM (LMF) -2002 dated January
1, 2002
Notification No.DNBS.156/CGM(LMF)-2002 dated January 1,
2002
The Reserve Bank of India, having considered it necessary in the 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 Companies Acceptance of Public Deposits
(Reserve Bank) Directions, 1998, in exercise of the powers conferred by
Sections 45J, 45K, 45L and 45MA 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 contained in Notification No.DFC.118/DG (SPT)/98 dated January
31, 1998 shall stand amended, with immediate effect, as follows, namely –
1. In paragraph 6, in sub
paragraph (1), the words, ", or a non banking financial company may
entrust such securities to the Stock Holding Corporation of India Ltd., with
the prior approval, in writing, of regional office of the Reserve Bank of India
under whose jurisdiction the registered office of the company is situated as
specified in Second Schedule hereto, subject to such conditions as may be specified
by the Reserve Bank of India in this behalf", shall be deleted.
2. In paragraph 6, in sub
paragraph (1), for the existing proviso, the following proviso shall be
substituted, namely, -
"Provided that where a non-banking financial
company intends to entrust these securities to Stock Holding Corporation of
India Ltd. or to its designated banker at a place other than the place at which
its registered office is located or to keep them in the form of Constituent’s
Subsidiary General Ledger Account with a scheduled commercial bank its
designated banker, or with a depository participant registered with Securities
and Board of India under Securities and Exchange Board of India Act , 1992 (15
of 1992), it shall obtain the prior approval, in writing, of Regional Office of
the Reserve Bank of India under whose jurisdiction the registered office of the
company is situated, as specified in Second Schedule hereto."
3. In paragraph 6, for sub-paragraph (2) the following sub-paragraph shall
be substituted, namely, -
"(2) the securities mentioned in
sub-paragraph (1) above shall continue to be entrusted to such designated
banker or the Stock Holding Corporation of India Ltd. or the depository
participant or held in the constituent’s Subsidiary General Ledger account with
the scheduled commercial bank for the benefit of the depositors and shall not
be withdrawn or encashed or otherwise dealt with by the non-banking financial
company except for repayment to the depositors :"
Sd/-
(L. M. Fonseca)
Chief General Manager - in – Charge
The Reserve Bank of India, having considered it necessary in the 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 Companies Prudential Norms (Reserve Bank)
Directions, 1998, 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 contained in
Notification No.DFC.119/DG(SPT)/98 dated January 31, 1998 shall stand amended
with immediate effect as follows, namely, -
1. In paragraph 8, in sub-paragraph (2), after note (5), the following note
shall be inserted, namely, -
"(6) All financial leases written on or
after April 1, 2001 attract the provisioning requirements as applicable to hire
purchase assets."
2. In paragraph 9A the following explanations shall be inserted, namely, -
"Explanation I: The Audit Committee
constituted by an NBFC as required under Section 292-A of the Companies Act,
1956 (1 of 1956) shall be the Audit Committee for the purposes of this
paragraph.
Explanation II: The Audit Committee constituted
under this paragraph shall have the same powers, functions and duties as laid
down in Section 292-A of the Companies Act, 1956 (1 of 1956)."
3. In paragraph 11B, after the explanation, the following proviso shall be
inserted, namely, -
"Provided further that the above ceiling on
the investment in unquoted shares shall not be applicable to an equipment
leasing company or a hire purchase finance company or a loan company or an
investment company in respect of investment in the equity capital of an
insurance company upto the extent specifically permitted, in writing, by the
Reserve Bank of India."
4. In paragraph 12, after first proviso, the following proviso shall be
inserted, namely, -
"Provided further that the above ceiling on
the investment in shares of another company shall not be applicable to an NBFC
in respect of investment in the equity capital of an insurance company upto the
extent specifically permitted, in writing, by the Reserve Bank of India."
Sd/-
(L. M. Fonseca)
Chief General Manager - in – Charge
The Reserve Bank of India, having considered it necessary in the 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 Residuary Non-Banking Companies (Reserve Bank) Directions, 1987,
hereby, in exercise of the powers conferred by Section 45J, 45K, 45L and 45JA
of the Reserve Bank of India Act, 1934 (2 of 1934) and all the powers enabling
it in this behalf, directs that the said Directions contained in Notification
No.DFC.55/DG(O)-87 dated the 15th May 1987 shall, stand amended with
immediate effect, as follows, namely :-
1. In paragraph 6, in sub-paragraph (2), for the words, " public sector
banks", the words, "scheduled commercial banks", shall be
substituted.
2. In paragraph 6, after sub paragraph (2), the following proviso shall be
inserted, namely, -
"Provided that where a residuary non-banking company intends to entrust
these securities to Stock Holding Corporation of India Ltd. or to its
designated banker at a place other than the place at which its registered
office is located or to keep them in the form of Constituent’s Subsidiary
General Ledger Account with a scheduled commercial bank its designated banker,
or with a depository participant registered with Securities and Exchange Board
of India under Securities and Exchange Board of India Act, 1992 (15 of 1992),
it shall obtain the prior approval, in writing, of Regional Office of the
Reserve Bank of India under whose jurisdiction the registered office of the
company is situated, as specified in Schedule B hereto."
Sd/-
(L. M. Fonseca)
Chief General Manager - in – Charge