Corporate governance norms for nbfc

  • What are the concentration norms for NBFC?

    In terms of groups of connected counterparties, RBI states that the all exposure values of an NBFC-UL to a group of connected counterparties shall not be higher than 25% of the NBFC-UL's available eligible capital base at all times..

  • What are the provision norms for NBFC?

    According to the regulations, these large or upper layer NBFCs will have to set aside a loan amount in the range of 0.25 – 2 percent for standard assets as provisions, depending on different asset categories like small and micro enterprises (SMEs), real estate, and housing loans..

  • What is the capital norm for NBFC?

    As per the current RBI guidelines, all NBFCs and HFCs are required to maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15 per cent of its aggregate risk weighted assets on-balance sheet and risk adjusted value of off-balance sheet items..

  • Key Points.
    All non-deposit taking NBFCs (NBFC-NDs) with asset size of Rs 10,000 crore and above and all deposit-taking NBFCs have to maintain a liquidity buffer in terms of Liquidity Coverage Ratio (LCR).
    However Type I - NBFC-ND entities are exempt from the applicability of LCR norms.
  • The Chairman of the Board shall mandatorily be an independent director.
    The quorum for the Board meetings shall be one-third of the total strength of the Board or three directors, whichever is higher.
    Further, at least half of the directors attending the meetings of the Board shall be independent directors.

Are NBFCs complying with the new norms?

It must be mentioned here that the data available with the Reserve Bank indicates that most AFCs are already complying with the revised norms and very few NBFCs have deposits in excess of 1

5 times of the NOF

Also, in cases where this limit is exceeded, the excess is not substantial

What are NBFC's internal guidelines on corporate governance?

All applicable NBFCs shall frame their internal guidelines on corporate governance with the approval of the Board of Directors, enhancing the scope of the guidelines without sacrificing the spirit underlying the above guidelines and it shall be published on the company's web-site, if any, for the information of various stakeholders

Most of the recent steps taken by private lenders for better corporate Governance in NBFC are as follows:- 1. Constitutionof commit…

Categories

Corporate governance nomination committee
Corporate governance non listed companies
Corporate governance policy template
Corporate governance policy pdf
Corporate governance policy for private companies
Corporate governance policy examples
Corporate governance podcast
Corporate governance policy document
Corporate governance policies and procedures
Corporate governance policy sample
Corporate governance positions
Corporate governance policies and procedures manual
Corporate governance powerpoint template free
Corporate governance positive and negative examples
Corporate governance policies in india
Corporate governance roles
Corporate governance role of board of directors
Corporate governance roadmap
Corporate governance role of company secretary
Corporate governance roadshow