RBI proposes NBFCs to take its nod for takeover/acquisition

The Reserve Bank today proposed that non-banking financial companies would have to take prior approval from the regulator for takeover or acquisition of such firms.
The final norms would be decided after taking into account views of various stakeholders.
In a draft directions, RBI said NBFCs will have to obtain prior approval in cases of acquisition or transfer of control of such firms, which may or may not result in change of management.
Under the proposed norms, approval will also be required in cases of any change in shareholding of an NBFC which would result in acquisition or transfer of shareholding of 26 per cent or more of the paid up equity capital of the NBFC, and any change in management of the NBFC which would result in change in more than 30 per cent of the directors.

NBFCs would also be required to furnish details about proposed directors/shareholders and about sources of funds of proposed shareholders acquiring shares of such firms.
Among others, RBI said that NBFCs will have to display a public notice of at least 30 days before effecting the sale or transfer of ownership.
"The public notice shall indicate the intention to sell or transfer ownership/control, the particulars of transferee and the reasons for such sale or transfer of ownership/control," it added.
The RBI has invited views and comments from all interested parties and general public by April 15 on the draft directions.