Question
In order to ensure continuous regulatory oversight and adherence to the “fit and proper” criteria for directors, Non-Banking Financial Companies (NBFCs) are required to periodically report any changes in their Board composition to the Reserve Bank of India (RB
- I . In this context, which of the following correctly specifies the frequency and timeline within which an NBFC must submit a statement regarding changes in its directors to RBI (or NHB in case of HFCs)?
Solution
The regulatory framework mandates that NBFCs must maintain continuous reporting discipline regarding changes in their Board of Directors. • The requirement is periodic (quarterly) and not event-based. This means even if no major changes occur, compliance must still follow the prescribed reporting cycle. • The statement must be submitted within 15 days from the end of each quarter, ensuring timely supervision by RBI. • This requirement applies uniformly, with NHB being the authority in case of Housing Finance Companies (HFCs).
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