Supreme Court Raises Concerns over MACT Rulings, Seeks Clear and Well-Reasoned Findings  ||  Supreme Court Revives over Rs.16 Crore Service Tax Demand Against BPCL and HPCL in CNG Sales Case  ||  Supreme Court Reduces Gang Rape Convict's Sentence to 20 Years, Cites Reform Prospects  ||  Rajasthan High Court: NI and Commercial Court Proceedings Equal, Grants Accused Original Records  ||  Bombay HC: Officials, Not Taxpayers, Must Pay For Losses From Illegal Project Cancellations  ||  Karnataka HC: Major Unmarried Daughter can Claim PG Education Costs under Domestic Violence Act  ||  Punjab & Haryana HC Calls For Wisdom Amid Lawyers' Strike over LADCS  ||  Kerala HC Orders SIT to Conclude Sabarimala Gold Theft Probe After National Metallurgical Lab Report  ||  Delhi HC Lifts Gag Order on the Wire; Prior Restraint in Defamation Not Sustainable  ||  Delhi HC: Parents Fined Rs.2 Lakh over False Birth Date for School Admission    

Invitation of applications for recognition of Self-Regulatory Organisations (SROs) for NBFCs- (Reserve Bank of India) (19 Jun 2024)

MANU/RPRL/0408/2024

Banking

1. The Reserve Bank had issued 'Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank' dated March 21, 2024, wherein broad parameters, viz., objectives, responsibilities, eligibility criteria, governance standards, application process, etc., were specified. It was also stated that other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately whenever a sectoral SRO is intended to be set up.

2. It has now been decided to invite applications for recognition of SROs for the NBFC sector under the aegis of the aforesaid omnibus framework. The applicant entity shall fulfil the eligibility criteria and guidelines mentioned under the omnibus framework, along with specific instructions specified hereunder:

A. Membership Criteria for the SRO for NBFCs

i. The SRO for NBFC sector is primarily envisaged for NBFCs in the categories of Investment and Credit Companies (NBFC-ICCs), Housing Finance Companies (HFCs) and Factors (NBFC-Factors). However, the SRO may also have other categories of NBFCs as its members.

ii. The recognized SRO shall have a good mix of NBFC-ICCs, HFCs and NBFC-Factors as its members. To ensure fair representation to smaller NBFCs, the SRO shall have at least 10% of the total number of NBFCs in the Base Layer as per Scale Based Regulatory Framework and categorised as NBFC-ICC and NBFC-Factor, as its members. Failure to achieve the aforesaid membership, within two years of the grant of recognition as SRO, would render the SRO liable for revocation of the recognition granted.

B. Other terms of recognition of SRO

i. The applicant should achieve a minimum net worth of Rupees two crore within a period of one year after recognition as an SRO by Reserve Bank, or before commencement of operations as an SRO, whichever is earlier. Thereafter, the SRO shall maintain this on an ongoing basis.

ii. A maximum of two SROs for the NBFC sector will be recognised, subject to the applicants fulfilling the prescribed criteria to the satisfaction of the Reserve Bank.

iii. The guidelines as given in the omnibus framework for recognition of SRO for REs of the Reserve Bank, shall be adhered to for application, recognition and functioning of the SRO.

iv. Different verticals/divisions within the SRO may be set up for catering to different categories of NBFCs, as considered necessary.

Tags : INVITATION   APPLICATIONS   SROS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved