RBI vide its notification DNRB. (PD).CC.No. 033/03.10.001/2014-15 dt. 30th Apr-15, has dispensed with the requirement of its prior approval for distribution of Mutual Fund products by NBFCs. It also dispensed with the requirement of minimum eligibility criteria set out in Dec-2006. RBI has also modified the guidelines related to distribution of Mutual Fund products accordingly.
RBI in circular no. DNBS (PD) CC No. 84 / 03.10.27 / 2006-07 dt. 4th Dec-06 has asked NBFCs to take its approval before distribution of Mutual Fund products. It also sets out following eligibility criteria for this:
- Minimum net owned fund of Rs.100 crore;
- The company should have made net profit as per last two years audited balance sheet;
- The percentage of net NPAs to net advances of the NBFC as per the last audited balance sheet should not be more than 3%;
- The non-deposit-taking NBFCs (NBFCs-ND) should have CRAR of 10% and deposit-taking NBFCs (NBFCs-D) should have CRAR of 12% or 15%, as applicable to the company.
Complete notification can be downloaded from here.