Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
NBFC in India has witnessed huge growth in Indian Market. Considering growth factor and expanding business globally, NBFCs have started looking to set up subsidiary/JVs in abroad.
The Reserve Bank of India (RBI) has paved the way for all NBFC desirous of setting up overseas branch/subsidiary/joint venture/representative office or undertaking investments abroad. RBI has mandated all such NBFC to obtain No Objection Certificate from Department of Non-Banking Supervision from the concerned regional office of the RBI.
NBFC (opening of Branch/Subsidiary/Joint Venture/Representative office or undertaking Investment abroad by NBFCs) Direction 2011 as amended time to time, (NBFC outbound Investment Direction) outlined the general and specific conditions subject to which the NOC will be issued the DNBS. Directions are applicable to both deposit taking as well as non-deposit taking NBFCs. Also, in addition to above, the FEMA regulation shall be applicable.
NBFC desire to set up Subsidiary or wholly owned subsidiary overseas shall satisfy conditions:
In addition to above conditions below some are the specific conditions are required to comply with:
As a general policy =, NBFCs are not allowed to open any branch abroad, but if any NBFCs who have already a branch opened in abroad for undertaking financial business shall allow continuing its operation after complying the provisions of revised guidelines as applicable.
The representative office can be set up abroad for the below purpose:
However, such entity shall not undertake any activity which involves an outlay of funds.
The NBFC has to comply with the above provisions in addition to the provisions of FEMA. i.e. The NBFC has to comply with the provisions of FEMA as well as above guidelines.
In accordance with the provisions of FEMA outbound regulations in following cases of outbound investment RBI approval is required:
There are two ways of making an investment in abroad i.e Automatic route and Approval route. The Applicant shall file an application in accordance with the provisions of FEMA. In addition, the applicant shall comply with the above provisions. The applicant shall obtain ‘No Objection Certificate’ (NOC) from the Department of Non-Banking Supervision of RBI before making an investment.
Read our article:NBFC: Things to know before Incorporating this Financial Institution
Experiencing the loss of a loved one is one of the deepest emotional hardships a person can fac...
On January 16, 2025, the Reserve Bank of India (RBI) released the list of Non-Banking Financial...
Over the decades, the Oil and Natural Gas Corporation (ONGC) has been a key pillar in the portf...
The Reserve Bank of India, on April 11, 2025, posted a Press Release No. 2025-2026/96 on their...
Hong Kong is widely recognized as a leading global business hub, known for its free-market econ...
Are you human?: 4 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Indian market for NBFCs has experienced tremendous expansion. Considering expansion and growing their operation...
17 Jun, 2023
The Reserve Bank of India, also referred to as RBI, is the country's central bank and a regulatory agency in charge...
10 May, 2023