Tightening its grip on non-banking finance companies (NBFCs), the Reserve Bank of India (RBI) has proposed to regulate the change in directorship.
According to the draft proposal, NBFCs need prior written permission from the RBI for any takeover or acquisition of control, which may or may not result in change of management; or change in the shareholding of an NBFC which would result in acquisition/transfer of shareholding of 26% or more of the paid up equity capital.
Moreover , the sector regulator has also proposed that NBFCs should issue public notice at least 30 days before effecting the sale, or transfer of ownership through sale of shares, or transfer of control whether with or without any sale of shares.
