NBFCs are registered under the companies act, 2013/1956 and are engaged in the business of loans and advances, acquisition of shares/stock/bonds, debentures and securities issued by government. NBFCs are the financial institutions which function according to set of rules and regulations prescribed by the Reserve Bank of India (RBI). Further, these rules and regulation keep on changing time to time as per the situation. So for the smooth functioning of NBFC, management should know about all the mandatory compliances. In addition to this, management should know the functioning and working of NBFC, what to do, and how to do. So for all the NBFCs, it’s important to keep themselves updated with every new rule.
Classify as below:
1. RBI Compliances:
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YEARLY COMPLIANCES |
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| FORM NAME | PURPOSE OF THE FORM | DEPARTMENT |
| 1. ALM Return | Asset liability mismatches and interest rate exposure | RBI |
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(Within 6 Months of the Financial Year ends) |
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| 2. Submission of Adoption of FPC, KYC, ALMby the end of October every year | ||
| 3. Details of Principal Officer, Nodal Officer, Secretary, Director acting in concert and other employees by the end of October every year. | ||
| 4. Mandatorily required to form Audit Committee, Nomination Committee & Risk Committee- No Timeline specified. To be formed as soon as preferable. | ||
| 5. Submission of SAC (Statutory Auditor Certificate) for verifying NOF (Net owned Fund) within one month from the date of finalization of balance sheet but not later than 30th December. | ||
2. FIU Compliance: Appointment of Principal Officer and Designated Director and registration the same on FIN gate site.
3. KYC Compliance– CERSAI- KYC Registration under PMLA Guidelines Policy to be made.
4. CIC Compliance- Registration to be done under all four CIC. All CIC have their annual fee criteria.
5. ROC Compliance-
| UNDER COMPANIES ACT, 2013 | ||
| FORM NAME | PURPOSE OF THE FORM | DEPARTMENT |
| E-Form MGT-7 | Annual Return (Within 60 days of conclusion AGM) | ROC |
| E-Form AOC-4 | Filing of annual financials i.e. Balance Sheet & Profit & Loss statement (Within 30 days of conclusion of AGM) | ROC |
| E-Form DIR-12 | If there is any change in Directors (Within 30 days of the date of that change) | ROC |
6. Adoption of Fair Practice Code– Policy to be made.
7. Grievance Mechanism to be followed by NBFC: It is applicable on NBFC having assets size of RS. 100 crores or more.
8. Accounting Standards to be followed by NBFC:
1. AS prescribed under Companies Act, 2013.
2. NBFC Prudential norms prescribed by RBI
3. AS-, AS-13 & AS-19 are relevant to NBFC
9. Prudential Norms applicable to NBFC-ND-NSI– NBFC with ND assets size less than Rs. 500 crores are exempted from CRAR and Complying with Credit concentration Norms. If customer interference involves, then only FPC & KYC will be applicable.
10. Any other Compliance to be followed by NBFC
(a) CERSAI- KYC Registration under PMLA Guidelines
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