Non-banking financial companies (NBFC) would need RBI’s prior approval before making changes in their ownership control, a draft guideline of the central bank said on Wednesday.
The draft guidelines, based on the Usha Thorat Committee report, also seek to make mandatory for all deposit-taking NBFCs to obtain credit rating.
Appointment of CEOs of NBFCs with asset size of Rs.1,000 crore and above would require the RBI approval, it added.
“In the interest of good governance and the sensitivities associated with NBFCs... such companies, whether listed or not, will need to comply with Clause 49 of SEBI’s listing agreement on corporate governance including induction of independent directors,” the draft said.
The draft norms said existing unrated NBFCs-D will be given one year to get rated, “thereafter, they would not be allowed to accept any fresh deposits or renew existing deposits, till they get themselves rated,” it said.
On change in control or transfer of shareholding, the draft said that all registered NBFCs should take prior approval from the RBI where there is a change in control and increase of shareholding to the extent of 25 per cent by individuals or groups, directly or indirectly.
Regarding non-performing assets (NPAs), the RBI has proposed that asset classification and provisioning norms should be made similar to that of banks for all registered NBFCs irrespective of the size.
At present, the period for classifying loans into NPAs in case of NBFCs is higher at 180/360 days compared to 90 days for banks.
The RBI has sought stakeholder comments on the draft norms by January 10.