An Overview of NBFC Compliance in India

Serial No.

Forms

Section and Rules

Particular of Compliance

Quarter- I (April to June)

1.

Form MBP-1

184(1)

Every Company’s Director in the 1^st meeting of the BoD in each Financial Year shall disclose their interest in other entities

Every Director of the Company is required to submit with the Company a new MBP-1 when there is a change in his or her interest from the earlier given MBP-1.

2.

Form DIR-8

164(2), 164(3)(g)

Every Director in each F.Y. will file with the Company disclosure of non-disqualification.

3.

MSME-1
Half-yearly Return (DG)

Section 405

Payment Delay to the MSME Vendor – The Company has to file this return half yearly in respect of the pending payments to the vendors at the end of half a year.

1. Apr to Sep – 31^st Oct

2. Oct to Mar – 30^th April

4.

PAS-6 (Half Yearly Return)

Rule 9A(3)

Reconciliation of Share Capital Audit Report. Company is required to submit the reconciliation share capital Audit report with the Registrar of Company audited by practicing CS at the end of half year.

1. Oct to Mar – 3oth May

2. Apr to Sep – 30^th Nov

Quarter – II (Jul to Sep)

5.

Approval of Financial Statement (DG)

134

Prep and Approval of Financial Statement. The report of Auditors shall be attached to every Financial Statement.

6.

Director’s Report

134

Report shall be prepared by providing all the required information for the Company under Section 134 read with relevant rules & provisions of other Acts.

It must be signed by the Chairperson certified by the Board, where he or she is not authorized by at least 2 Directors of the Company, one of them should be an MD if there is any.

7.

Holding of AGM

96

Every Company should hold in addition to any other meetings each year, a General Meeting (GM) as its Annual General Meeting (AGM).

It shall be held within a period of 6 months from the date of closing of F.Y.

8.

Notice of AGM

101 & SS-II

Every Notice of the AGM will be prepared as per Section 101 of the Act & SS-II.

9.

Sending Notice of Annual General Meeting

101 & Secretarial Standard (SS)

Notice of AGM will be sent to all the Directors, Members, Auditors, and Debenture Trustees (if any)

10.

Circulation of Financial Statements & Other Relevant Documents

136

The company will send to its members the approved Financial Statement, Directors’ Report & Auditors’ Report at least 21 days before the AGM.

If the Annual General Meeting is called on shorter notice then above mentioned documents shall be circulated in such a shorter period.

For holding the Annual General Meeting on short notice, companies need to get the proper approvals as per the Act.

11.

Annual Form (DIR-3 KYC)

Rule 12A

KYC of the Directors, all the Directors must file this Form on or every 30^th September every year.

12.

Annual Form:

1. AOC-4 NBFC

2. AOC-4 NBFC (INDAS)

3. AOC-4 CFS NBFC (INDAS)

137

· Financial Statement: The company must file its Balance Sheet along with the P&L Account Statement, Directors & Auditors Report, and Cash Flow Statement in this Form within 30 days of holding of the AGM.

· Attachment: Balance Sheet, Statement of P&L Account, Cash Flow Statement, Auditors and Directors’ Report, and an AGM Notice

13.

E-Forms Filing Requirements (Annual Form)
MGT-7

92

Every Year Company will file its Annual Return within 60 days of holding the AGM. Annual Return

14.

Certification of Annual Return (Form MGT-8)

92

A company having paid-up share capital of Rs. 10 crores or more or a turnover of Rs. 50 crores/more shall be certified by a Practicing CS.

Quarter – IV – Jan to Mar

15.

Board Meetings

173 & SS-I

Every Company shall hold a minimum of 4 meetings of its Board of Directors every year in such a manner that the maximum gap between the two meetings shouldn’t be more than 120 days.

16.

Maintenance of Statutory Registers

88 & other Sections

The company will maintain some Mandatory Registers like:

· Registers of Members;

· Registers of Director Shareholding;

· Registers of Transfer;

· Registers of related party transactions, etc.

17.

Appointment of Auditor

E-Form ADT-1

139

The Auditor will be appointed for 5 years & Form ADT-1 will be filed for a 5-year appointment within 15 days of the AGM.

No.

Forms

Applicability

Description

Due Date

Monthly Compliance

1.

Form DNBS-04 (Return Structural Liquidity & Interest Rate Sensitivity)

NBFCS-NDSI & NBFCs-D

The specifics of the mismatch in predicted future cash flows & outflows for NBFCs-NDSI are based on the maturity pattern of liabilities & assets at the end of the reporting period.

Within 10 days of every month’s end

2.

CIC Reporting

All NBFCs

Each NBFC is required to report its loans to all 4 CICS.

On/before the 10^th day of the succeeding month

3.

NESL

All NBFCs

All NBFCs must notify NESL of not more than their financial debt.

Not later than the 1 week after the start of the following month

Quarterly Compliance

1.

DNBS-01 Return

NBFCS-NDSI & NBFCs-D

The return includes financial details for NBFC-D & NBFC-NDSI comprising components of Assets & Liabilities, Profit & Loss Accounts, Exposure to Sensitive Sectors, etc.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

2.

DNBS-03 Return

NBFCS-D, NBFCS-NDSI & NBFCs Non-NDSI have more than Rs. 100 crores assets

The return shows adherence to prudential standards, including NBFC-Deposit-Taking & NBFC-NDSI like Asset Classification & Provisioning, Capital Adequacy Asset (CAA), and NOF, etc.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

3.

DNBS-04A Reply Short-Term Dynamic Liquidity (STDL)

NBFCs-NDSI, NBFCs-D, and Non-NDSI and NBFCs with Assets of more than Rs. 100 crores

To record specifics regarding any discrepancies b/w anticipated inflows & outflows based on future cash business projections.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

4.

DNBS-06

RNBCS

The return includes 15^th April, and 15^th July details about assets & liabilities and compliance with key prudential standards for RNBCs.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

5.

Form DNBS-07

ARCs

To record financial metrics & various operational details for ARCS, including assets (NPA), Acquisition Cost, Recovery Progress, etc.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

6.

DNBS-08 CRILC Key Return

NBFCs-D, NBFC-Factors, NBFCs-NDSI

Must record credit details on exposure of more than Rs. 5 crores to a single borrower

· 21^st April

· 21^st July

· 21^st October

· 21^st January

7.

DNBS-11

NBFC-CICs

The return includes financial details for CIC-ND-Sis like elements of assets & liabilities, a Profit & Loss account, exposure to sensitive industries, etc.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

8.

DNBS-12

NBFC-CICs

For CIC-ND-Sis, the return documents adhere to prudential standards, and 15^th Jan as Asset Classification, Capital Adequacy, Provisioning, NOF, etc.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

9.

DNBS-13

All NBFCs

To gather data on foreign 15^th April, and 15^th July Investments for all NBFCs

· 15^th April

· 15^th July

· 15^th October

· 15^th January

10.

DNBS-14

NBFC-P2Ps

 The return consists of information regarding assets & liabilities and whether NBFCs-P2P have complied with main prudential standards.

· 15^th April

· 15^th July

· 15^th October

· 15^th January

Annual Compliance

1.

DNBS-02 Return

Non-NDSI NBFCs

This includes financial details for non-deposit, taking non-NDSI NBFCs like components of assets & liabilities and compliance with certain prudential standards.

2.

DNBS-010

Every NBFC & ARCs

For all NBFCs to maintain ongoing after the day, the compliance balance of regulatory

15 days after the day, the balance of the statement was finalized but not later than 31^st Oct.

Additional NBFC Compliance

1.

DNBS-05 Return

Rejected NBFCs

To record details of NBFCs that accepted public deposits but whose COR is rejected.

As when RBI rejected the COR

2.

DNBS-09 CRILC details

NBFCs-D, NBFCs-NDSI, NBFC-NBFCs-D

In SMA-2 for the day, all these NBFCs and BFC-Factors with aggregate classified exposure> Rs. 5 crores to a single classified borrower were reported.

As soon as the account is classified (de-classified as SMA-2)

3.

CKYCR

Res

Every regulated institution including Non-Banking Financial Companies is required to do KYC when disbursing loans or establishing account relationships.

Within 10 days of the account relationship’s start date.

4.

CERSAI

All financial institutions

 At the time of disbursing secured loans

To get 1^st change of secured property asap

5.

FIU-IND

All regulated entities

 All regulated organizations are required to report some transactions to the FIU-IND agency as mentioned in Rule 3, 2005 PMLA Regulations.

Within 15 days of the month & working 7 days of being convinced that the transaction is suspicious.

6.

Foreign Investments

All NBFCs

All NBFCs must provide details on Foreign Investments by NBFCs.

Within 15 days from the end of each quarter

7.

Return on FDI

All NBFCs

 All NBFCs are required to give details of FDI by NBFCs.

Within thirty days from the end of half year.