Lawgist45MBAResolution of non-banking financial company
1[45MBA. Resolution of non-banking financial company.--(1) Without prejudice to any other provision of this Act or any other law for the time being in force, the Bank may, if it is satisfied, upon an inspection of the Books of a non-banking financial company that it is in the public interest or in the interest of financial stability so to do for enabling the continuance of the activities critical to the functioning of the financial system, frame schemes which may provide for any one or more of the following, namely: --
(a) amalgamation with any other non-banking institution;
(b) reconstruction of the non-banking financial company;
(c) splitting the non-banking financial company into different units or institutions and vesting viable and non-viable businesses in separate units or institutions to preserve the continuity of the activities of that non-banking financial company that are critical to the functioning of the financial system and for such purpose establish institutions called "Bridge Institutions".
Explanation.-- For the purposes of this sub-section, "Bridge Institutions" mean temporary institutional arrangement made under the scheme referred to in this sub-section, to preserve the continuity of the activities of a non-banking financial company that are critical to the functioning of the financial system.
(2) Without prejudice to the generality of the foregoing provisions, the scheme referred to in sub-section (1) may provide for--
(a) reduction of the pay and allowances of the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company;
(b) cancellation of all or some of the shares of the non-banking financial company held by the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company or their relatives;
(c) sale of any of the assets of the non-banking financial company.
(3) The chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company whose pay and allowances are reduced or the shareholders whose shares are cancelled under the scheme shall not be entitled to any compensation.]
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1. Ins. by Act 23 of 2019, s. 140 (w.e.f. 9-8-2019).
- 45H Chapter IIIB not to apply in certain cases
- 45-I Definitions
- 45-IA Requirement of registration and net owned fund
- 45-IB Maintenance of percentage of assets
- 45-IC Reserve fund
- 45-ID Power of Bank to remove directors from office
- 45-IE Supersession of Board of directors of non-banking financial company (Other than Government Company)
- 45J Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money
- 45JA Power of Bank to determine policy and issue directions
- 45K Power of Bank to collect information from non - banking institutions as to deposits and to give directions
- 45L Power of Bank to call for information from financial institutions and to give directions
- 45M Duty of non-banking institutions to furnish statements, etc., required by Bank
- 45MA Powers and duties of auditors
- 45MAA Power to take action against auditors
- 45MB Power of Bank to prohibit acceptance of deposit and alienation of assets
- 45MBA Resolution of non-banking financial company
- 45MC Power of Bank to file winding up petition
- 45N Inspection
- 45NA Deposits not to be solicited by unauthorised person
- 45NAA Power in respect of group companies
- 45NB Disclosure of information
- 45NC Power of Bank to exempt
- 45-O Omitted.
- 45P [Omitted.]
- 45Q Chapter IIIB to override other laws
- 45QA Power of Company Law Board to offer repayment of deposit
- 45QB Nomination by depositors
