RBI tightens merger rules for NBFCs
According to Reserve Bank of India (RBI), Non-Banking Financial Companies (NBFCs) to take its prior approval before buying shares of other NBFCs or for merger and acquisition with another entity.
This rule will be applicable to both deposit taking and non-deposit accepting companies and any infringement of it may cost the company its registration.
Prior written clearance of RBI would also be mandatory before approaching the Court or Tribunal seeking order for mergers or amalgamations with other companies or NBFCs.
Month: Current Affairs - May, 2014