Non-FATF area investors can’t have ‘significant influence’ in NBFCs: RBI




The Reserve Financial institution on Friday mentioned buyers from non ‘Monetary Motion Process Drive’ criticism jurisdictions can solely maintain lower than 20 per cent of the voting energy in India-based NBFCs.

The Monetary Motion Process Drive (FATF) periodically identifies jurisdictions with weak measures to fight cash laundering and terrorist financing.





In a notification on Friday, the RBI mentioned that new buyers from or by non-compliant FATF jurisdictions, investing in present NBFCs or in firms looking for registration, shouldn’t be allowed purchase “important affect” within the investee.

“Recent buyers (instantly or not directly) from such jurisdictions in combination needs to be lower than the edge of 20 per cent of the voting energy (together with potential voting energy) of the NBFC,” it mentioned.

Additional, buyers in present NBFCs holding their investments previous to the classification of the supply or intermediate jurisdictions as FATF non-compliant, could proceed with the investments or herald further investments to assist continuity of enterprise in India.

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