Prior approval of RBI required for acquisition/ transfer of control of NBFCs

RBI has mandated prior approval of RBI in cases of acquisition/ transfer of control of Non-Banking Financial Companies (NBFCs) whether by acquisition of shares or through a change in management.  The directions contained are applicable with immediate effect, i.e., the same will apply on any takeover or acquisition of control, any change in the shareholding or any change in the management occurring after the date of this circular.

Any violation of the aforementioned directions would result in adverse regulatory action including cancellation of CoR.

Link to the Notification: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=9934&Mode=0