Time to say Wah! to Pravaah: New interface for regulatory approvals by NBFCs
– Vinod Kothari and Anita Baid
While the regulatory interface for NBFCs with the RBI is considerably easier than that for banks, considering the sheer number and small size of several NBFCs, there are very frequent occasions for approvals like change in management, change of directors, etc., for which NBFCs need to approach the RBI for approval. For an NBFC having 3 directors, if one dies or retires and a new director has to be appointed, this fits the regulatory definition of “change in management”, even though nothing may have changed on the shareholding front.
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