(1)
In view of the fact that the mutual funds have the time tested
appraisal techniques for assessment of the borrowers' capacity to
repay the debts and they do not require the same degree of
protection as needed by the depositors under the RBI Act, it has
been decided to exempt the borrowings from mutual funds from the
purview of public deposits. The NBFCs could reduce the amount of
borrowings from mutual funds while computing the outstanding
public deposits as on December 31, 1999 and maintain the liquid
assets on and from April 1, 2000 on the remaining public deposit
liabilities as per the extant provisions under Section 45-IB of
the RBI Act, 1934.
(2)
(a) NBFC should give at least 3 months public notice prior to
the date of closure of any of its branches/ offices in, at least,
one leading national news paper and a leading local (covering the
place of branch / office) vernacular language newspaper indicating
therein the purpose and arrangements being made to service the
depositors etc.
(b) (i)
To ensure that the new management follows the objectives and to
keep the public informed of the change of management and control
of NBFCs, it has been decided that a public notice of three months
shall be given before effecting the sale of, or transfer of the
ownership by sale of shares, or transfer of control, whether with
or without sale of shares. Such public notice shall be given by
the NBFC and also by the transferor, or the transferee
(ii) The public notice should indicate the intention to
sell or transfer ownership / control, the particulars of
transferee and the reasons for such sale or transfer of ownership
/ control. The notice should be published in one leading national
and another in leading local (covering the place of registered
office) vernacular language newspaper.
An intimation along with a copy of the notice in respect of items
(a) and (b) above should be sent within 7 days of its publication
in the newspapers to the Regional Office of RBI under whose
jurisdiction the registered office of the company is located.
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