Brief Overview:
The Ministry of Corporate Affairs, Government of India proposes to extend the exemption provided pursuant to Section 186(11)(a) of the (Indian) Companies Act, 2013 to non-banking financial companies, to ‘Finance Companies’ registered with International Financial Services Centres Authority (IFSCA).
Technical Details:
The Ministry of Corporate Affairs, Government of India, pursuant to its draft notification dated 26th June 2025, has proposed to extend the exemption provided pursuant to Section 186(11)(a) of the (Indian) Companies Act, 2013 to non-banking financial companies, to ‘Finance Companies’ operating under the regulatory ambit of IFSCA.
Presently, as per Section 186(11)(a) of the (Indian) Companies Act, 2013 read together with rule 11(2) of the Companies (Meetings of Board and its Powers) Rules, 2014, non-banking financial companies registered with the Reserve Bank of India and engaged in the business of giving loans or providing guarantee / security for due repayment of loans availed by any person in the ordinary course of business, are exempt from the requirements of section 186 (except sub-section (1) of such section) of the (Indian) Companies Act, 2013.
Comments/ suggestions have been sought from the stakeholders on the same and are to be submitted latest by 17th July 2025.
For further details, please see:
Companies (Meetings of Board and its Powers) Amendment Rules, 2025
Public Notice – Companies (Meetings of Board and its Powers) Amendment Rules, 2025
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