NEW DELHI (Reuters) – India’s central bank said on Friday that new investors operating from jurisdictions that do not comply with the Financial Action Task Force (FATF) must have less than 20% of their voting power. held in non-banking financial firms (NBFCs).
In an effort to stop the spread of money, the Reserve Bank of India (RBI) said investors from non-FATF-compliant jurisdictions would not be treated on an equal footing with those from other countries or regions. .
“New investors from or through non-compliant FATF jurisdictions, whether in NBFCs or in companies seeking a Certificate of Registration (COR), should not be allowed a ‘significant impact’. received directly or indirectly in the owner, as described in the relevant standards account, ”said the RBI.
The move comes days after the central bank tightened regulation, similar to a bank proposing a so-called shadow lending sector to curb the turmoil caused by the collapse of infrastructure financing company in 2018 .
The RBI was closely monitoring investments flowing from Mauritius into Indian non-banking financial firms last year and had rejected several claims by NBFCs because of their ties to the island nation.
Sources had reported that RBI was returning NBFC claims because the parent entity of the proposed NBFC was not regulated or listed in the headquarters jurisdiction.
Reciting with Neha Arora; edited by David Evans