NBFCs not to be Partners in Partnership Firms

The RBI has issued Circular No. RBI/2012-13/526/DNBS.PD/CC.No.328/03.02.002/2012-13 on 11.06.2013 stating that currently NBFCs are prohibited from Contributing capital to any partnership firm or To be partners in partnership firms.

It is now clarified that partnership firms mentioned above will also include Limited Liability Partnerships (LLPs) and Association of persons, these being similar in nature to partnership firms. NBFCs which had already contributed to the capital of a LLP/Association of persons or were a partner of a LLP/Association of persons are advised to seek early retirement from the LLP/Association of persons.

Download Circular RBI Circular – NBFC cant be partner in Form

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