Non-Banking Financial Company (NBFC) Compliance

Non-Banking Financial Company (NBFC) must commence its business within the period of six months from the date of obtaining Certificate of Registration.

What is Annual Compliance for Non-Banking Financial Company

There are two types of NBFC based on liabilities:

1. Deposit Accepting NBFCs (NBFCs-D) [Deposit Taking]
2. Non-Deposit NBFCs (NBFCs-ND) [Non-Deposit Taking]
   • Systematically Important NBFCs-ND (NBFCs-ND-SI)
   • Others NBFCs-ND

Here are the following types of return required to be submitted by both the categories:

Returns Required to be Submitted by Deposit Taking NBFC

• NBS-1

Quarterly returns on deposit in the first schedule.

• NBS-2

Quarterly return on prudential norms.

• NBS-3

Quarterly return on liquid assets.

• NBS-4

The annual return of critical parameters by a rejected company holding public deposits.

• NBS-6

Monthly return on exposure to capital market by deposit-taking NBFC with the total assets of Rs. 100 crore or more.

• ALM return

Half yearly by NBFC holding public deposits of more than Rs. 20 Crore or asset size of more than Rs. 100 Crore.

1. Audited Balance Sheet and Auditor’s Report by NBFC accepting public deposits.
2. Branch Info Return

Returns required to be Submitted by Non-Deposit NBFC (NBFCS-ND-SI)

• NBS-7

A quarterly statement of capital funds, risk-weighted assets, risk assets ratio etc.

• NBS-2

Monthly return on important financial parameters of NBFCs-ND-SI.

• ALM Returns

Monthly- statement of short-term dynamic liquidity in format NBS-ALM-1.

Half Yearly- Statement of structural liquidity in format NBS-ALM2

Half Yearly- Statement of interest rate sensitivity in format NBS-ALM-3

• Branch info return

Quarterly return on important financial parameters of non-deposit taking NBFCs having assets of more than ₹ 50 crores and above but less than ₹ 100 crores. Basic information like name of the company, address, Net Owned Fund, profit/loss during the last three years has to be submitted quarterly by non-deposit taking NBFCs with asset size between ₹ 50 crores and ₹ 100 crores.

Here are the following compliances are required to be done with the required authorities:

Compliances for NBFC-ND with RBI

Annual Compliances

S 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 Compliances

S No.	Particulars	Time limit
1	Monthly Return	by 7th of every month
2	Upload monthly	by 7th of every month

Periodical Compliances

S No.	Particulars	Time limit
1	Appointment of Director(Annexure-III)	within 30 days of appointment
2	Upload monthly return	within 30 days of the resignation

 

Compliances for NBFC-ND with NSE

S No.	Particulars	Time limit
1	Filing of Listing Agreement of Issued Series	Within 30 days of Issuance
2	Publishing of Unaudited Half-yearly Result in two newspaper	Within 30 days from the end of Half-year
3	File Half-yearly Audited Result with NSE via mail	Within 30 days from the end of Half-year
4	File Quarterly result (Balance Sheet and P&L) via mail	Within 90 days from the end of Quarter
5	Filing Umbrella Information Memorandum/Shelf Offer Document + below letters: 1. Letter from CRISIL for filing UIM 2. Letter from AXIS Bank (Debenture Trustee) for filing UIM 3. Certified true copy of the resolution authorizing the filing of UIM 4. Certified true copy of the blanket resolution covering Debt issuances for filing UIM 5. Certify compliance as per Chapter VI of SEBI (DIP) Guidelines 2000 & Sch-II of Companies Act,1956 6. Obtain In-principle approval letter from NSE post-filing	At the end of Financial Year