A BRIEF OVERVIEW AS TO WHY REGISTRATION REQUIREMENT WAS INTRODUCED FOR NBFC

The Scheme of regulation of NBFCs originated in mid-sixties when an upsurge in deposit mobilisation by Non-Banking Companies was noticed. However, the focus of regulation was mainly intended to ensure that it serves as an adjunct to monetary and credit policy and also provides an indirect protection to the depositors. The focus continued to be the same till early 90s. Over a period of time, especially during late 80s and early 90s, NBFCs have penetrated into the main stream of financial sector and have established themselves as complements of banking industry. .At the dawn of liberalisation era, the Narasimham Committee (1991) had broadly touched upon the role of NBFCs in the emerging financial sector and made certain valuable recommendations for their healthy growth. The general tone of the committee was that these companies should be encouraged to grow with corresponding reinforcement of regulatory and supervisory frame work. As a sequel to Narasimham Committee, Reserve Bank had appointed a Working Group on Financial Companies (Chairman, Dr. A.C.Shah) to make an in-depth study of the role of NBFCs and suggest regulatory and control measures to ensure healthy growth and operation of these companies. The Committee had made several recommendations with far reaching implications. Accepting most of the recommendations of the Committee, Reserve Bank had considered the Report as an Approach Document for furtherance of the NBFCs sector.

Some of the major recommendations of the Group were relating to shift of regulatory approach from the liability to the asset side, introduction of scheme of registration and entry point norm with minimum net owned fund (NOF) of Rs.50 lakhs for existing/new NBFCs, issue of prudential norms for income recognition, provisioning, capital adequacy etc., and amendments to RBI Act, 1934 giving

enhanced power to RBI for better regulation of NBFCs. The recommendations of the committee were implemented in a phased manner. While the scheme of registration was introduced in April 1993 for all NBFCs having NOF of Rs.50 lakhs and above, prudential norms/ guidelines were issued in June 1994 for all registered NBFCs. These norms were more in the nature of guide lines which were not mandatory in the absence of necessary statutory powers. Subsequent to this, in April 1995, underscoring the importance of setting out a effective supervisory frame work, an expert group under the Chairmanship of Shri P.R. Khanna, Member of the Advisory Council for the Board for Financial Supervision was appointed to design an effective and comprehensive supervisory framework for NBFC sector. Most of the recommendations of the Committee were accepted and a supervisory framework comprising on-site inspection for bigger companies and off-site surveillance system for other companies were designed and the same was being implemented in a phased manner.

As mentioned above, since mid 60s legislative frame work was structured mainly to regulate the deposit acceptance activities of NBFCs. However, in the changed scenario at that point of time and in the light of the recommendation of the Shah Working Group so also the observations of the Joint Parliamentary Committee a comprehensive draft legislation was prepared in 1994 which however, required extensive discussion with Ministry of Finance and Law. Finally, an Ordinance was promulgated by the Government in January 1997, effecting comprehensive changes in the provisions of RBI Act. The ordinance was thereafter replaced by an Act in March 1997. The amended Act, among other things, provided for entry point norm of a minimum NOF of Rs.25 lakhs (even though the Ordinance provided for the minimum limit at Rs.50 lakhs) and mandatory registration for new NBFCs for commencing business, maintenance of liquid asset ranging from 5 to 25per cent of deposit liabilities, creation of reserve fund by transferring not less than 20 per cent of the net profit every year, power to the Bank to issue directions relating to prudential norms, capital adequacy, deployment of funds, etc. power to issue prohibitory order and filing of winding-up petition for non-

compliance of Directions/Act. The above legislative changes were to enable Reserve Bank to better regulate the NBFCs.

In pursuance of the requirements under the legislative amendments, w.e.f. 9th January, 1997, no NBFC shall commence or carry on financial activity without obtaining/applying for a Certificate of Registration from/to the Reserve Bank.

A Non banking financial company in existence on the commencement of the Reserve Bank of India (Amendment) Act, 1997 was required to make an application for registration to bank before expiry of six months from the date of commencement of the said new provisions and could further continue to carry on the business of a non-banking financial institution until its application for registration was rejected and communicated to it.

The industry has promptly responded to the legal requirement and around 37,500 applications were received before the dead line.

Vide Notification No DNBS.132/CGM(VSNM)-99 dared 20-4-1999, the stipulated minimum NOF for registration as a NBFC was increased to Rs 200 lacs w.e.f 214-1999. However this was not applicable for companies whose application for certificate of Registration under Section 45-IA of the Act, was submitted to RBI on or before 20th April,1999.

FORMATION OF A NON-BANKING FINANCIAL COMPANY

Chapter IIIB of Reserve Bank of India Act 1934 (the Act) governs the provisions relating to a Non- Banking Financial Company. Non Banking Financial Company (NBFC) has been defined in clause (f) of Section 45-I of the Act to mean-

i.

a financial institution which is a company;

ii.

a non- banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner , or lending in any manner;

iii.

such other non- banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notifications in the Official Gazette specify.

The term Financial Institution has been defined in clause (c) of Section 45-I to mean any non- banking institution which carries on as its business or part of its business any of the following activities namely:

i.

the financing, whether by way of making loans or advances or otherwise, of any activity other than its own;

ii.

the acquisition of shares, bonds, debentures or securities issued by a Government or local authority or other marketable securities of a like nature.

iii.

letting or delivering of any goods to a hirer under a hire-purchase agreement as defined in clause. (c) of Sec. 2 of the Hire-Purchase Act, 1972 (26 of 1972);

iv.

the carrying on of any class of insurance business;

v.

managing, conducting or supervising, as foreman, agent or in any other capacity, of chits or kuries as defined in any law which is for the time being in force in any State, or any business, which is similar thereto;

vi.

collecting, for any purpose or under any scheme or arrangement by whatever name called, moneys in lump sum or otherwise, by way of subscription by sale of units, or other instruments or in any other manner and awarding prizes or gifts, whether in cash or in kind or disbursing moneys in any other way, to person from whom moneys are collected or to any other person,

but does not include any institution, which carries on as its principal business,-

(a) agricultural operations; or

(aa) industrial activity; or

(b) purchase or sale of any goods (other than securities) or the providing of any services; or

(c) the purchase, construction or sale of immovable property, so, however, that no portion of the income of the institution is derived

from the financing of purchases, construction or sales of immovable property by other persons

Clause (aa) of Section 45-I of the Act defines acompany as a company defined in Section 3 of Companies Act, 1956, & includes a Foreign Company within the meaning of Section 591 of the that Act.

Thus a Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A nonbanking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).

The provisions relating to requirements of Registration and Net Owned Fund is covered under Section 45-IA of the Act.

Section 45-IA provides that no NBFC shall commence or carry on the business of Non- Banking Financial Institution without

(a) obtaining a Certificate of Registration issued under this Chapter (Chapter IIIB) ; and

(b) having the net owned fund of fifty lakh rupees or such other amount, not exceeding two hundred lakh rupees, as the bank may, by notification in the Official Gazette, specify.

The NOF prescribed was Rs 25 lacs.

Further sub-section (2) of Section 45-IA provides that every NBFC shall make an application for registration to the Bank in such a form as the Bank may specify.

Further Subsection (4) of 45-IA provides that the Bank may for the purpose of considering the application for registration, required to be satisfied by an inspection of the books of the Non- Banking Financial Company or otherwise that the following conditions are fulfilled:-

(a) that the non- banking financial company is or shall be in the position to pay its present or future depositors in full as and when their claims accrue;

(b) that the affair of the non- banking financial company are not being or are not likely to be conducted in a manner detrimental to the interest of its present or future depositors;

(c) that the general character of the management or the proposed management of the non- banking financial company shall not be prejudicial to the public interest or the interests of the depositors;

(d) the non-banking financial company has adequate capital structure and earning prospects;

(e) that the public interest shall be served by the grant of certificate of registration to the non- banking financial company to commence or to carry on the business in India;

(f) that the grant of certificate of registration shall not be prejudicial to the operation and consolidation of the financial sector consistent with monetary stability and economic growth considering such other relevant factors which the Bank may, by notification in the Official Gazette, specify; and

(g) any other condition, fulfillment of which in the opinion if the Bank, shall be necessary to ensure that the commencement of, or carrying on of the business in India by a non- banking financial company shall not be prejudicial to the public interest or in the interests of the depositors.

Sub-section (5) of 45-IA provides that the Bank may, after being satisfied that the conditions specified in sub-section (4) are fulfilled, grant a certificate of registration subject to such conditions which it may consider fit to impose.

Therefore in terms of Section 45-IA of the RBI Act, 1934, it is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.However, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under Section 620A of the Companies Act, 1956, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982 or Housing Finance Companies regulated by National Housing Bank.

Having given a fair idea of the provisions of Reserve Bank of India Act, 1934, relating to requirements for registration of NBFC. we give hereunder the detailed steps required for formation of new NBFC:

i.

The first step is to form a new Company registered under the Companies Act, 1956. The name must reflect the character of an NBFC. Words such as Investment, Finvest, Finstock, Finance etc. may be used as part of the name. In general, RBI does not allow names which are not reflecting the characteristics of NBFC.

ii.

After the Company is incorporated the Paid up Equity Capital of the Company should suitably raised either at par or premium so as to attain a minimum Net Owned Fund of Rs. 2 crores. The Capital to be raised here should be Equity Share Capital and not Preference Share Capital. It should also be noted that there is distinction between Net Owned Fund and Net Worth. However initially when a Company is formed & the Net Worth is raised to Rs. 2 crores, we have on the liability side of the Balance Sheet, Shareholders Fund represented by Equity Share Capital & Reserves & Surplus and on the asset side we have Cash & Bank Balances & Miscellaneous Expenses being Company formation Expenses. In such a situation Networth Equals Net Owned Fund.

iii.

The entire sum of Rs. 2 crores should be kept in a bank in a Deposit Account free from all lien. Normally funds are kept in Fixed Deposit. It is further stated that RBI at the time of considering the application for the grant of Certificate of Registration verifies with the of deposits held by the Company with the Bankers.

iv.

No NBFC business should be started till the Certificate of Registration is granted by RBI.

v.

The Company is required to submit its application online by accessing RBIs secured website https://secweb.rbi.org.in/COSMOS/rbilogin.do

(the applicant companies do not need to log on to the COSMOS application and hence user ids for these companies are not required). The company has to click on CLICK for Company Registration on the login page. A window showing the Excel application forms available for download would be displayed. The company can then download suitable application form (i.e. NBFC or SC/RC) from the above website, key in the data and upload the application form. The company may note to indicate the name of the correct Regional Office in the field C-8 of the Annx-Identification Particulars worksheet of the Excel application form. The company would then get a Company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form (indicating the Company Application Reference Number of its on-line application) in duplicate , along with the supporting documents as prescribed in the form , to the concerned Regional Office. The company can then check the status of the application based on the acknowledgement number. The Bank would issue Certificate of Registration after satisfying itself that the conditions as enumerated in Section 45-IA of the RBI Act, 1934 are satisfied

vi.

Some of the important points to be considered while filling the Application Form are as under:

At Least one of the directors should be having experience in the business of NBFC.

The Directors of the Company should not be convicted / prosecuted of any offence either in Individual Capacity or as Partner/Director of any Firm/Company.

In case the shareholder of the Company is an

NBFC it

should be insured that the said NBFCs are regular in compliance of RBI directions , are update in documents to be filed with RBI from time to time and have the minimum stipulated NOF of Rs. 25 Lacs or Rs. 2 Crores as the case may be. RBI requires certain information and documents to be filed by each of these NBFCs and also internal verification are carried out by RBI in respect of each of these NBFCs.

In addition to the documents required to be enclosed along with Application Form the following should also be enclosed:

i.

Copy of Form-32 of all present directors with receipt.

ii.

Copy of Form-18 of present situation of Registered Office, with receipt.

iii.

Copy of Form-2 Return of allotment of Shares, with receipt.

iv.

Experience Certificate or Details of Experience of Directors, if any, in NBFC Business.

v.

Bankers Report in the format prescribed by RBI with the request to Bank that original should be directly sent to RBI.

vi.

Bankers

Report

of

all

the

Firms/Company/

Proprietorship Concern in which director holds substantial interest

Substantial Interest here means holding of beneficial interest by an individual or his/her spouse or minor children whether singly or taken together in share of a Company / Capital of a Firm the amount paid up on which exceeds 10% of the total capital or total Capital subscribed by all the partners of a Partnership Firm.

vii.

Board Resolutions in the matter of Application for granting Certificate of Registration, Non- Acceptance of Public Deposits and Non Carrying business of

Non-Banking Financial Institution without Certificate of Registration . Specimen Resolutions are enclosed

herewith marked Annexure- A

viii.

Board Resolution adopting a Fair Practices Code and a copy of the said Code. Specimen is enclosed herewith marked Annexure-B

ix.

Declaration from Directors to give affect that they are not associated with unincorporated bodies U/s 45-S of RBI Act, 1934 Specimen declaration is herewith marked Annexure- C enclosed

A checklist of the documents to be filed alogwith the application is enclosed herewith marked Annexure D. The list is not exhaustive and RBI may ask for further documents on case to case basis.

The application is to be filed with the Regional Office of RBI whose jurisdiction , the registered office of the Company falls. After the application is filed , the same is examined by RBI and further

documents and clarifications may be sought from time to time. Finally if RBI

considers that the application is complete in all respects and all required documents and information is furnished to its satisfaction , it may grant Certificate of Registration to carry on the business of NBFC not accepting public deposits or else the application is returned. It may be noted that when applications are filed at the Regional Office , they vet the application and if everything is founf by them in order they send the same to Central Office for further examination and approval. However if the application is not in order they send back the application and pointing out the defects. At this stage the applicant should not be disheartened and the defects should be cured and the aplplication should again be filed. Finally if Central Office approves the Application, the Regional Office will issue certificate of Registration.

ANNEXURE A SPECIMEN RESOLUTIONS

APPLICATION FOR CERTIFICATE OF REGISTRATION:

RESOLVED THAT consent of the Board be and is hereby accorded for making an application to Reserve Bank of India in terms of Sub-section (2) of Section 45IA of the Reserve Bank of India Act, 1934 for granting Certificate of Registration to commence/carry on the business of a Non-Banking Financial Institution & that the application in Annexure-I alongwith Annexure-II Annexure-III and that the relevant documents as placed before the Board & initialed by the Chairman for the purpose of identification be and is hereby approved and that Mr. X, Director be and is hereby authorized to sign the application form and related annexure & documents enclosed herewith and affix common seal on said form and do all acts & deeds considered necessary.

NON-ACCEPTANCE OF PUBLIC DEPOSITS:

RESOLVED THAT consent of the Board be and is hereby accorded to the nonacceptance of Public Deposits as defined in Paragraph 2(1)(xii) of the NonBanking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 at any time in future without prior approval of Reserve Bank of India.

The Chairman further confirmed and declared that the company neither accepted nor does it hold any Public Deposits within meaning of aforesaid directions as on date.

NBFI BSINESS:

RESOLVED THAT consent of the Board be and is hereby accorded for not conducting/commencing NBFI business without obtaining Certificate of

Registration from Reserve Bank of India and that the company has not conducted/commenced NBFI business as on date.

The

Chairman

further

confirmed

that

the

Company

has

not

conducted/commenced NBFI business.

ANNEXURE B

FAIR PRACTICES CODE:

The Chairman informed the Board that the Reserve Bank of India in exercise of powers conferred under Section 45L of the RBI Act, 1934 and of all the powers enabling it in this behalf has issued a Circular No.DNBS (PD) CC No.80/103.10.042/2005-06 dated September 28,2006 for all NBFCs prescribing the Broad guidelines on fair practices that are to be framed and approved by the Board of Directors of all NBFCs. It is further required that the Fair Practices Code so framed and approved by the Board of Directors should be published and disseminated on the web-site of the Company, if any, for the information of the public. It is further required that the FPC should be put in place by all NBFCs with the approval of their Boards within one month from the date of issue of the aforesaid Circular. He then placed before the Board, a draft of the Fair Practices Code (FPC) drafted by him. The Board examined and discussed the draft FPC and the following resolution was carried out:

RESOLVED THAT the Draft Fair Practices Code (FPC), as laid before the meeting and initialed by the Chairman for the purpose of identification be and is hereby approved with liberty to the Board to make such amendments as they deem necessary from time to time and that the same shall be implement on receipt of Certificate of Registration to commence/carry on the business of NBFI from Reserve Bank of India.

SPECIMEN FAIR PRACTICES CODE

Applications for retail, vehicle & personal loans and their processing:

Application forms for each of the product offered by the Company would be different depending on the requirement for information for each product. All necessary information required for the borrowers will be available in the relevant application forms. Besides the various documents that need to be submitted with the application form will also be provided in the application forms. The information would include information about the fees/charges, if any, payable for processing, the amount of such fees that might be refundable in the case of non acceptance of application, pre-payment options and any other matter which affects the interest of the borrower, so that a meaningful comparison with that of other competitors can be made and informed decision can be taken by the borrowers.

The Company would give an acknowledgement for receipt of all loan applications. The normal time frame within which loan applications complete in all respect will be disposed of would be indicated in the acknowledgement of such applications. The company would verify the loan applications within a reasonable period of time. If additional details/documents are required, it would intimate the customers immediately.

Loan appraisal and terms/conditions:

The Company would ensure that there is proper assessment of credit application made by borrowers.

The assessment would be in line with the Company credit policies and procedures.

The Company would convey in writing to the borrower the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

The Company would not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude the Company from participating in credit-linked schemes framed for weaker sections of the society.

In the matter of recovery of loans, the Company would adopt legally valid processes and not resort to undue harassment or use of force viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

In case of receipt of request for transfer of borrowal account, either from the borrower or from a bank/financial institution, which proposes to take over the account, the consent or otherwise i.e. objection of the Company, if any, would be conveyed within 21 days from the date of receipt of request.

Grievance Redressal Mechanism:

Disputes arising out of decisions of the Companys functionaries would be disposed of at the next higher level.

The Board of directors would do a review of compliance of the Fair Practices Code and the functioning of the grievance redressal mechanism once in 6 months.

The customers of the Company are entitled under the Companys Whistleblower policy, to bring to the notice of the designated officer any act of any employee/agent of the Company that is in contravention of the said whistleblower policy.

A copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement may be furnished to the borrower, if asked for.

Disbursement of loans including changes in terms and conditions:

The Company would ensure timely disbursement of loans sanctioned in conformity with the terms and conditions governing such sanction. It would give notice of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. It would also ensure that changes in interest rates and charges are effected only prospectively. However the loans will be sanctioned at the discretion of the Board and that the Board reserves the right to reject any loan application.

Post disbursement supervision

The Company would carry out post-disbursement supervision in accordance with normal business practice, the terms of sanction, and the guidelines issued by the Reserve Bank of India from time to time.

The Company would carry out any decision to recall / accelerate payment or performance under the agreement only in consonance with the loan agreement.

The Company would release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim the Company may have against borrower with prior notice to the customers. The notice will provide full particulars about the remaining claims and the provisions under which the Company is entitled to retain the securities till the relevant claim is settled / paid.

General:

The Company would not cause interference in the day-to-day affairs of the borrowers except for what is provided in the terms and conditions of the loan sanction documents (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).

ANNEXURE C.

Declaration by Directors regarding their non association with unincorporated bodies under Section 45S of the Reserve Bank of India Act, 1934.

I, A, son of Mr. B, at present residing at ABC being the director of X Private Limited, a Company incorporated under the provisions of the Companies Act,1956 and having its registered office at PQR declare that I am not associated with any of the unincorporated bodies who have accepted deposits covered under Section 45S of the Reserve Bank of India Act, 1934.

ANNEXURE D. List of documents submitted along with the application for Certificate of Registration (in duplicate)

Serial no. (1)

Particulars

Ref. No.

Annexure-I, Annexure-II and Annexure-III to the application. Annexure-III is submitted in respect of all the directors of the applicant company.

(2)

Certified copy of up-to-date Memorandum and Articles of Association of the company. The Memorandum of Association of the applicant company should have enabling clause/s for conducting of NBFI business by the company.

(3)

Certified copy of Certificate of Incorporation (bearing the signature of the Registrar of Companies).

(4)

Bankers Report in a sealed cover. A copy of the same should be send to the General Manager, RBI, DNBS, Kolkata by the bank at the request of the company.

(5)

Bankers Reports in respect of companies in which the directors have substantial interest as indicated against items Nos. 14 & 15 of Annexures-III. Registration number and nature of business activities of the companies in which the Directors have substantial interest should also be furnished.

(6)

Bankers Report in respect of group/subsidiary/holding companies if any, of the applicant company. Details of the interest held by Directors in such companies are to be furnished.

(7)

Certified copy of Board Resolution approving the submission of application for COR.

(8)

Certified copy of the audited balance sheet and profit & loss

account of the company for the last three years (in case of existing companies intending to commence NBFI business) and proforma balance sheet and profit & loss account as on the date on which the statement of capital funds and risk assets is furnished in AnnexureII to the application is submitted .. Brief history of Company along with summary of financial for last five years. (9) Business Plan of the company for the next three years giving details of its thrust of business, market segment and projection of investments and income together with projected Balance Sheet and Profit & Loss Account for the next three years. (10) Certified copy of Board Resolution that the company has not accepted any public deposits in the past/does not hold any public deposits as on date and will not accept the deposits in future without prior approval of the Bank. (11) Certified copy of Board Resolution that the company has not conducted/commenced NBFI business and also shall not

conduct/commence NBFI business without obtaining Certificate of Registration from the Bank. (12) Auditors Certificate and extracts of Bank statement regarding receipt of share premium, if any. (13) Auditors Certificate to the effect that the : a) Company has not accepted/is not holding any public deposits as on date and will not accept such deposits in future without prior approval of the Bank. b) Company is not carrying on any NBFI activity as on date. c) Company has an NOF of Rs.200 lakh as on date.

(14)

A certificate of Chartered Accountant regarding details of group/associate/subsidiary/holding companies along with details of investments in other NBFCs as shown in the Proforma Balance Sheet (Annexure-II)

(15)

Details of Book Value of bonds/debentures/outstanding loans and advances (including hire purchase & lease finance) made to and deposits with a) Subsidiaries b) Group companies as on the Proforma Balance Sheet (Annexure-II) duly certified by the Auditor.

(16)

Details of cost and market/Break Up Value of Quoted/unquoted investments including current investments as on the Proforma Balance Sheet (Annexure-II) duly certified by the Auditor.

(17)

The details of experience of directors in NBFI business as indicated against Item No. 12 of Annexure-III are to be submitted.

(18)

Name of the companies indicated against Item No. 9 of AnnexureIII, in which the directors of the applicant company are the directors, are NBFC registered with the Reserve Bank.

(19)

The Declarations of the directors regarding their non-association with the unincorporated bodies under Section 45S of the Reserve Bank of India Act, 1934 are submitted.

(20)

The particulars of approval of Foreign Exchange Department (FED) if any obtained/copies of Foreign Inward Remittance Certificates in respect of Foreign Direct Investment if any, received by the applicant company are to be furnished.

(21)

A Board Resolution to the effect that the company has formulated a

Fair Practise Code and copy whereof should be enclosed and the same would be implemented on grant of COR. (22) If Company does not have a website it can submit information through e-mail or any other mode through internet a statement

in this regard. (23) Documentary evidence like certified Xerox copy of electric bill/telephone bill in the name of the applicant company. (24) Whether the Company is regulated by other regulators like SEBI, IRDA etc. (25) Income Tax PAN in respect of the company as well as all the directors. (26) As a New Company it is not allowed to commence Non-Banking Financial Company business until it is issued Certificate of Registration from the Bank. If at all it has commenced the NonBanking Financial Company business before submitting application for Certificate of Registration its required to explain as to how it has commenced the above Non-Banking Financial Company business before obtaining Certificate of Registration from the Bank and thereby violating the provisions of Section 45-IA of the Reserve Bank of India Act, 1934. (27) Copies of Form 2,5,18,23,29 & 32 and Annual Return filed with Registrar of Companies, West Bengal with Registrar of Companies money receipt.. (28) In case of amalgamation with other companies, copy of High Court Order allowing the above amalgamation together with copies of Form No 21 filed with Registrar of Companies, West Bengal including Registrar of Companies money receipt. (29) (30) Reason for setting up NBFC. Documents called by this Deptt. In respect of (a)NBFCs having common Directors with the applicant company and (b)

subscriber/investor NBFCs, must be submitted to the satisfaction of

Company Monitoring Division. (31) The current Net Owned Fund (NOF) of all the NBFCs subscribing to the capital of the applicant company, the computation being duly certified by the Statutory Auditor.