Sebi-Rbi Panel Drafting Nbfc Capital Market Exposure Norms

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) are working together to push through capital market exposure norms for non-banking finance companies (NBFCs).

The trigger point for this move is Tata Finance's erstwhile subsidiary Niskalp Investment's huge exposure to some of the K-10 stocks in alleged violation of all prudential norms.

The markets regulator is also keen to bring in the Company Law Board (CLB) and the Department of Company Affairs (DCA) into the picture while drafting the norms.

According to sources, in a brief meeting of the RBI-Sebi technical committee last week, the securities watchdog is understood to have raised the issue of corporates floating too many finance companies through which investments are routed.

Since most of them are unlisted, it is difficult to keep track of where and what they are investing in, sources said.

While Sebi has no jurisdiction over finance companies