Option to exit: Type 1 NBFCs get continuing deregistration option
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Existing companies may apply within 6 months of 1st July; new companies may avoid registration on satisfying Type 1 and asset size conditions
The RBI’s relief to exempt pure investment companies from exemption from regulation, is now in final shape. We have earlier commented on the draft Amendment Directions. The final amendments in Directions, notified on 29th April, 2026, accept some of the public feedback. However, the condition that the NBFC seeking exemption should not have any debt on the liability, nor any debt on the asset side, even if from/to group entities, remains.
The exemption window opens on 1st July, based on asset size, no customer interface, no public funds and some other conditions (discussed below). The window remains till 31st Dec., 2026; however, even in future, it will be open for NBFCs to opt to exit from registration.
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