NBFCs Told to Take RBI Nod for M&As

The Economic Times - - Economy -

Re­serve Bank of In­dia has di­rected non-bank­ing fi­nan­cial com­pa­nies (NBFCs) to take its prior clear­ance be­fore pur­chas­ing shares of other NBFCs or for merger and ac­qui­si­tion with an­other en­tity, re­ports Our Bureau. This rule will be ap­pli­ca­ble to both de­posit-tak­ing and non-de­posit ac­cept­ing com­pa­nies and any vi­o­la­tion of it may cost the com­pany its reg­is­tra­tion, the cen­tral bank told NBFCs on Mon­day in a note. Prior writ­ten ap­proval of RBI would also be re­quired be­fore ap­proach­ing the court or tri­bunal seek­ing or­der for merg­ers or amal­ga­ma­tions with other com­pa­nies or NBFCs.

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