IndiaCSR News Network

NEW DELHI : The RBI has reviewed corporate governance and disclosure norms for NBFCs based on the feedback received from industry participants and the difficulties expressed by them in its effective implementation.

NBFCs shall furnish to RBI a quarterly statement on change of directors certified by the auditors and a certificate from the Managing Director that fit and proper criteria in selection of directors have been followed, the central bank said in a notification on Friday.

The quarterly statements, can be certified by the Managing Director, except that the statement pertaining to the quarter ended March 31 need to be necessarily certified by the auditors.

Independent / non-executive directors of an NBFC should be between 35 to 70 years of age. NBFCs shall communicate outcome of Board deliberations to directors and concerned personnel and prepare and circulate minutes of the meeting of Board to directors in a timely manner and to the extent possible within two business days of the date of conclusion of the Board meeting.

It is clarified that circulation of minutes within two business days is not mandatory and provisions in Companies Act, 2013 in this regard shall apply.