Notification No. G.S.R. 811(E) dated November 03, 2025
Applicable Act/Rule: Companies Act, 2013 & Companies (Meetings of Board and its Powers) Rules, 2014
Applicable Section/Rule: Section 186(11) of Companies Act, 2013 & Rule 11 of Companies (Meetings of Board and its Powers) Rules, 2014
Under the Companies Act, 2013, section 186 regulates loans, guarantees and investments by companies. Rule 11 of the Companies (Meetings of Board and its Powers) Rules, 2014 provides that for the purposes of clause (a) of sub-section (11) of section 186, “business of financing industrial enterprises” shall include certain activities for NBFCs registered with the Reserve Bank of India
The amendment substitutes sub-rule (2) of Rule 11 of the 2014 Rules with the following:
(2) For the purposes of clause (a) of sub-section (11) of section 186 of the Act, the expression “business of financing industrial enterprises” shall include –
(i) with regard to a Non-Banking Financial Company registered with the Reserve Bank of India, “business of giving of any loan to a person or providing any guaranty or security for due repayment of any loan availed by any person in the ordinary course of its business”; and
(ii) with regard to a Finance Company registered with the International Financial Services Centres Authority, “activities as provided in sub-clause (a), or sub-clause (e) of clause (ii) of sub-regulation (1) of regulation 5 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 in the ordinary course of its business”.’
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