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Legal Analysis of NBFC Annual Compliance?

In recent times, RBI compliances are getting tougher for NBFCs as compared to before. There were times when Non-Banking Financial Companies had privileges over banks. In comparison to banks, compliance laid down by RBI for NBFCs were far more lenient but after the Sahara case, RBI has made new compliances for NBFCs and now it is under RBI’s continuous screening. Some of the important guidelines are Securitization of Standard Assets and Guidelines for Private Placement of NBFCs. RBI is keeping making efforts for preventing speculation in NBFCs.

RBI releases notifications for the additional compliance requirement for NBFCs.

Submission of Annual Statements and Returns

NBFC-ND-SI (Non-Deposit category) are required to submit an annual statement of capital funds, risk assets ratio etc. It can be submitted electronically as well as physically.

Further Capital Adequacy, Liquidity, and other disclosure norms have been incorporated in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

CRAR

ALM Returns are required to be submitted by NBFC- ND-SI

Checklist for NBFC Non-Deposit Compliances With RBI

Annual Compliance

SERIAL NO.	PARTICULARS	TIME LIMIT
1.	Unaudited March Monthly return/NBS7	on or before 30th June
2.	Audited March Monthly return/NBS7	Upon completion
3.	Statutory Auditors certificate on Income & Assets	on or before 30th June
4.	Information about Cos having FDI/Foreign Funds	on or before 30th June
5.	Resolution of Non-acceptance of Public Deposit	before the commencement of the new Financial year
6.	File Audited Annual Balance Sheet and P&L Account	One month from the date of signoff
7.	Declaration of Auditors to Act as Auditors of the Company	annual basis

Monthly compliance

SERIAL NO.	PARTICULARS	TIME LIMIT
1.	Monthly Return	by 7th of every month

Periodical compliances

SERIAL NO.	PARTICULARS	TIME LIMIT
1.	Appointment of Director	within 30 days of appointment
2.	Resignation of Director(DIR-12 + Challan Receipt)	within 30 days of resignation
3.	Adoption of any notification in the ensuing Board Meeting & filing the certified copy with RBI

NBFC Annual Compliance

ALL INCLUSIVE FEE RS. 199999 ONLY