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Wednesday, June 12

NBFC s not to be partners in LLP / AOP s- RBI clarification

RBI issued a clarification on 11.06.2013 on subject of Non-Banking Financial Companies (NBFC) becoming partners in  Limited Liability Partnership(LLP) s. The Central Bank had earlier issued a notification dtd 30.03.2011 prohibiting NBFC s from contributing to capital or becoming partners in Partnership firms. In yesterday' s notification, RBI clarified that this prohibition would also apply to contributing to capital or becoming partners in LLP and Association of Persons (AOP). The NBFC s who have contributed to capital/became partners in Partnerships/LLP/AOP shall retire from the same at the earliest.

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