On Jun. 19, IND RBI decided to invite applications of SROs for NBFCs.
IND RBI decided to invite applications for recognition of self-regulatory organisations (SROs) for non-banking financial companies (NBFCs) under the omnibus framework.
Applicant entity shall fulfil the eligibility criteria and guidelines under the framework.
SRO is primarily envisaged for NBFCs in the categories of investment and credit companies (NBFC-ICCs), housing finance companies (HFCs) and factors (NBFC-Factors).
SRO shall have at least 10% of total number of NBFCs in the base layer as per scale based regulatory framework, categorized as NBFC-ICC/NBFC-Factor, as its members.
Failure to achieve the membership, within two years of the grant of recognition as SRO, would render the SRO liable for revocation of the recognition granted.
Other Terms
The applicant shall have net worth at least of INR 20mn within 1 year after recognition.
A maximum of two SROs for the NBFC sector will be recognized; different verticals/ divisions within the SRO may be set up for catering to different categories of NBFCs.
Application, recognition and functioning of the SRO shall comply with relevant guidelines under the omnibus framework for recognition of SRO for regulated entities.
Effectiveness
Interested applicants shall submit applications by Sep. 30, 2024.
