Page 5 - Base Layer News Today

India Business News: The Reserve Bank said that starting October 2024, the strict supervisory norms under the Prompt Corrective Action (PCA) Framework will apply to govern

The Reserve Bank of India (RBI) has announced that government-owned non-banking financial companies (NBFCs) will be subject to the strict supervisory norms of the Prompt Corrective Action (PCA) Framework starting from October 2024. This framework includes restrictions on dividend distribution and profit remittance, requirements for equity infusion by promoters/shareholders, leverage reduction, and limitations on issuing guarantees or taking on contingent liabilities for group companies.

The Reserve Bank of India (RBI) has announced that it will bring state-owned non-banking finance companies (NBFCs) under the prompt corrective action (PCA) framework from October 2023. The central bank will review the financials of these NBFCs as of March 2024. The PCA framework was initially introduced for NBFCs on December 14, 2021, to address their growing size and systemic importance.

Tata Capital is an RBI-registered non-deposit-accepting core investment company, which holds investments in its subsidiaries, which are engaged in lending and offering a wide array of services and products in the financial services sector.

Apart from Tata Sons, its subsidiary, Tata Capital Financial Services, is also included in the list. Tata Sons will be merging Tata Capital Financial Services into Tata Capital.

As per media reports, the RBI announced a list of 15 NBFCs with Tata Sons name in the upper-layer category on 14 September, requiring more regulatory compliance, , sensex, nifty, ipo, trading, investment, tata sons

The list has LIC Housing Finance Limited on top, followed by Bajaj Finance Limited in second place, and Shriram Finance Limited (formerly Shriram Transport Finance Company Limited) in third, , nbfc, reserve bank of india, lic housing finance ltd, bajaj finance, shriram finance

Besides LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons, others in the list include L&T Finance, Piramal Capital & Housing Finance, Cholamandalam Investment and Finance Company

(This story has not been edited by THE WEEK and is auto-generated from a PTI

The Reserve Bank of India has released a list of fifteen NBFCs that fall under the "upper layer" in the scale-based regulation for the financial year 2024. LIC Housing Finance Limited, Bajaj Finance Limited, and Shriram Finance Limited are among the top-ranking companies on the list.