On July 6, 2020, the Reserve Bank of India (“RBI”) issued a notification RBI/2020-21/11 DoR (NBFC) (PD) CC. No. 114/03.10.001/2020-21 (“Notification”) addressed to all non-banking financial companies (“NBFCs”). Paragraphs 18(2) of the Master Direction on Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, provides that every NBFC to which the aforementioned provisions are applicable must finalize their balance sheet within a period of 3 (three) months from the date to which it pertains. However, pursuant to the Notification, it has been decided that “every applicable NBFC shall finalise its balance sheet within a period of 3 months from the date to which it pertains or any date as notified by SEBI for submission of financial results by listed entities.”.
Read notification here.
This update has been contributed by Adity Chaudhury (Partner) and Kshitija Naik (Associate).
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