NBFC - MMJC https://mmjc.in Governance. Clarity. Confidence. Wed, 13 May 2026 09:25:07 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://mmjc.in/wp-content/uploads/2025/02/cropped-logo-1-32x32.webp NBFC - MMJC https://mmjc.in 32 32 NOT ALL NBFCs NEED TO BE REGISTERED ANYMORE! RBI notifies the amendment dated April 29, 2026 https://mmjc.in/not-all-nbfcs-need-to-be-registered-anymore-rbi-notifies-the-amendment-dated-april-29-2026/?utm_source=rss&utm_medium=rss&utm_campaign=not-all-nbfcs-need-to-be-registered-anymore-rbi-notifies-the-amendment-dated-april-29-2026 Wed, 13 May 2026 09:17:07 +0000 https://mmjc.in/?p=7164 The RBI just made registration optional for some NBFCs. Are you one of them? Starting July 1, 2026, NBFCs that operate without public funds and customer interface may no longer need to be registered, if they meet the right criteria and apply before December 31, 2026. This is a significant deregulatory step, and the compliance […]

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]]> The RBI just made registration optional for some NBFCs. Are you one of them?

Starting July 1, 2026, NBFCs that operate without public funds and customer interface may no longer need to be registered, if they meet the right criteria and apply before December 31, 2026.

This is a significant deregulatory step, and the compliance implications are real. Swipe through our quick guide to understand what changes, what stays, and what your Board needs to do now.

Click here to view details!

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]]> The Structural Shift Hidden Inside RBI’s 2026 Amendment https://mmjc.in/the-structural-shift-hidden-inside-rbis-2026-amendment/?utm_source=rss&utm_medium=rss&utm_campaign=the-structural-shift-hidden-inside-rbis-2026-amendment Tue, 12 May 2026 08:03:49 +0000 https://mmjc.in/?p=7134 Shift made by the RBI’s 2026 Amendment: For years, any Company undertaking investment activities in shares, securities, bonds, mutual funds or other financial instruments was generally expected to obtain NBFC registration under Section 45-IA of the RBI Act, 1934. But registration came with a heavy compliance framework: As a result, many HNIs, family offices and […]

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]]> Shift made by the RBI’s 2026 Amendment: For years, any Company undertaking investment activities in shares, securities, bonds, mutual funds or other financial instruments was generally expected to obtain NBFC registration under Section 45-IA of the RBI Act, 1934.

But registration came with a heavy compliance framework:

  • Minimum Net Owned Fund (NOF),
  • Statutory reserve requirements,
  • Prudential regulations,
  • RBI reporting and inspections,
  • Continuous supervisory oversight.

As a result, many HNIs, family offices and investment groups preferred investing through:

  • Individuals,
  • HUFs,
  • Partnership firms, or
  • LLPs

While this avoided RBI regulation, it created significant commercial inefficiencies:

  • Tax rates @ 35%,
  • No limited liability protection,
  • Difficult succession and estate planning,
  • No perpetual succession,
  • Challenges in pooling family capital professionally.

The Turning Point: RBI Amendment Directions, 2026: The RBI’s 2026 amendment changed the landscape completely.

A private limited company undertaking investment activity may now operate without NBFC registration, provided it:

  1. Does not accept public funds,
  2. Has no customer interface, and
  3. Has asset size below ₹1,000 crore.

This effectively creates a lawful corporate investment platform without the traditional NBFC compliance burden.

Tax Efficient may be the Commercial Driver: The biggest attraction is the combination of:

  • No RBI registration, and
  • Lower corporate taxation of 25%

Permitted Activities: These companies may undertake proprietary investments such as:

  • Listed and unlisted equity investments,
  • Bonds and debentures,
  • Mutual funds, ETFs and AIFs,
  • F&O trading on own account,
  • IPO and strategic investments.

However, the core principle remains: – Investment must be strictly from owned funds and on own account only — with no public funds or customer-facing activity.

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