RBI has vide its notification dated 28th April, 2017 stipulated minimum Net Owned Fund (NOF) requirement by Asset Reconstruction Companies (ARCs) at Rs.100 crores on an ongoing basis.
All the ARCs which are already registered with Reserve Bank of India as on the date of the Notification and not having the revised minimum NOF as on date shall achieve a minimum NOF of ₹ 100 crore latest by March 31, 2019. ARCs shall submit a certificate from their Statutory Auditors periodically as evidence of compliance thereof.
All the ARCs which are already registered with Reserve Bank of India as on the date of the Notification and not having the revised minimum NOF as on date shall achieve a minimum NOF of ₹ 100 crore latest by March 31, 2019. ARCs shall submit a certificate from their Statutory Auditors periodically as evidence of compliance thereof.
NOF shall be arrived at by reducing from Owned Fund (OF), as defined in the Notification DNBR (PD).CC.No.03/SCRC/26.03.001/2015-16 dated July 1, 2015, the amounts representing -
i. investments of the ARC in shares of –
- its subsidiaries;
- companies in the same group;
- all other ARCs; and
ii. the book value of debentures, bonds, outstanding loans and advances made to, and deposits with, -
- subsidiaries of the ARC; and
- companies in the same group,
to the extent such amount exceeds 10% of the OF.
Copy of the RBI notification can be found here
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10949&Mode=0
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