Many non-banking finance companies (NBFCs) have made investment in overseas ventures without the regulatory clearance by Reserve Bank of India (RBI). A Statement with the details of the NBFCs, registered with Securities and Exchange Board of India (SEBI), which have made investments in overseas Joint Ventures/
Wholly Owned Subsidiaries without approval of the Reserve Bank of India (RBI) during the last three years and action taken is attached as Annex -I. Similar Statement in respect of other NBFCs is at Annex-II.
The admitted contraventions are compounded by the RBI only after the NBFC obtains post-facto approval from the regulator.
Annex-I
Statement as referred to in part (b) & (c) of the Lok Sabha Un-starred Question No.3435 for answer on 13.8.2010 regarding ‘Investment by NBFCs Overseas’
Overseas investments made by SEBI registered NBFCs
YEAR 2007-08 – NIL
YEAR 2008-09
| Sr. No. | Name of Company | Amount of Investment | Remarks |
| 1. | JRG Securities Limited | USD 375000 | Compounded |
| 2. | Shri Regi Jacob, MD, JRG Securities Ltd. | USD 375000 | Compounded |
| 3. | Alchemy Capital Management Private Ltd. | SGD 150000 | Compounded |
YEAR 2009-10
| Sr. No. | Name of Company | Amount of Investment | Remarks |
| 4. | MF Global Sify Securities India Pvt. Ltd. | USD 405000 | Compounded |
| 5. | Avendus Capital Private Ltd. | GBP 250000 | Compounded |
| 6. | Asit C. Mehta Investment Intermediaries Ltd. | USD 475000 | Compounded |
| 7. | Avendus Capital Private Ltd. | USD 400000 | Compounded |
| 8. | Spark Capital Advisors (India) Private Limited | USD 323962 | Compounded |
| 9. | Anand Rathi Financial Services Limited | HKD 97000 | Compounded |
| 10. | JRG Securities Limited | USD 375000 | Compounded |
| 11. | Shri Regi Jacob, MD, JRG Securities Ltd. | USD 375000 | Compounded |
| 12. | Alchemy Capital Management Private Ltd. | SGD 150000 | Compounded |
| 13. | MF Global Sify Securities India Pvt Ltd | USD 405000 | Compounded |
| 14. | Avendus Capital Private Ltd. | GBP 250000 | Compounded |
| 15. | Asit C. Mehta Investment Intermediaries Ltd. | USD 475000 | Compounded |
| 16. | Avendus Capital Private Ltd. | USD 400000 | Compounded |
| 17. | Spark Capital Advisors (India) Private Limited | USD 323962 | Compounded |
| 18. | Anand Rathi Financial Services Limited | HKD 97000 | Compounded |
Annex-II
Statement showing the names of the Indian Companies –
investments in JV/WOS abroad without RBI’s approval
| Sl. No | Name of the Indian Company | Investment | Remarks | ||
| 2007-2008 | 2008-2009 | 2009-2010 | |||
| 1. | M/s.Shrenuj Investments & FinancePvt. Ltd. | – | USD 50,000 | – | Compounded |
| 2. | M/s. Narottamaka Commodities Pvt. Ltd. | AUD 3,000,000 | – | – | Compounded |
| 3. | M/s. Bengal & Assam Company Ltd. (formerely M/s. Panchanan Investments Ltd.) | USD 2,440 | – | – | Compounded |
| 4. | M/s. A. T. Invofin India Pvt. Ltd.
A-60, Naraina Industrial Area |
USD 8,500,000 | – | – | Under process of Compounding |
| 5. | M/s. Edelweiss Finance & Investments Ltd.(formerly Crossborder Investments Pvt. Ltd.) | USD 6,000,000 | – | – | Compounded |
| 6. | M/s. Shriram Overseas Investments Pvt. Ltd. (formerly Dhanashri Investments Pvt.Ltd.) | – | USD 778,915 | – | Compounded |
| 7. | M/s. Petal Vinimay Pvt. Ltd. | – | BRL 1,92,320 | – | Under Process of Compounding |
| 8. | M/s. Anjali Capfin Pvt. Ltd. | – | AED 60,000 | – | Compounded. |
| 9. | M/s. Petal Vinimay Pvt. Ltd. | – | AED 30,000 | – | Compounded. |
| 10. | M/s. Sarjana Cafpin pvt. Ltd. | – | AED 60,000 | – | Compounded. |
| 11. | M/s. Primus Capital Pvt. Ltd. | USD 4,39,000 | – | Compounded. | |
| 12. | M/s. Petrochem International Ltd. | USD 12000 | – | – | Compounded. |
| 13. | M/s. M G Portfolio Pvt. Ltd. | – | USD 3,12,500 | – | Compounded |
| 14. | M/s. J Bhasin Leasing Ltd. | – | USD 13,17,412 | – | Compounded |
| 15. | M/s. Singhal Fincap | – | USD 3,12,500 | – | Under Process of Compounding |
| 16. | M/s. Rudawal capital Trust | – | AUD 3,00,000 | – | Under Process of Compounding. |
| 17. | M/s. Dhanvarsha Enterprises & Investment Pvt. Ltd. (Isle of Man) & M/s. Sri Hari Vallabha Enterprises & Investment Pvt. Ltd. (Isle of Man) | – | GBP 36,95,000 | – | Under process of compounding |
| 18. | M/s. Sri Hari Vallabha Enterprises & Investment Pvt. Ltd.( For Seychelles) | – | USD 25,26,800 | – | Under process of compounding |
| 19. | M/s. Ikhlas Investments & Services Pvt. Ltd. | – | USD 32,480 | – | Compounded |
| 20. | M/s. Contil India Ltd. | USD 90,000 | – | – | Under process of compounding |
| 21. | M/s. Russel Credit Ltd. | AUD 6,142,855 | – | – | Treated as technical contravention and a letter of displeasure was issued to the company and AD. |
| 22. | Arihant Mangal Securities Pvt. Ltd. | USD 25,000 (November 2006) | – | – | Under process of compounding |
* Data is based on the reports of remittances received from Authorised Dealers.
This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in a written reply to an unstarred question in Lok Sabah today.
