The Reserve Bank of India (RBI) is the main regulator of NBFCs in India. The RBI has the power to register, regulate, and supervise NBFCs under the Non-Banking Financial Companies Act, 1997.
The Securities and Exchange Board of India (SEBI) regulates certain types of NBFCs, such as investment companies and merchant bankers. SEBI has the power to register, regulate, and supervise these NBFCs under the Securities and Exchange Board of India Act, 1992.
The Insurance Regulatory and Development Authority (IRDA) regulates insurance companies, which are a type of NBFC. IRDA has the power to register, regulate, and supervise insurance companies under the Insurance Act, 1938.
The National Housing Bank (NHB) regulates housing finance companies, which are a type of NBFC. NHB has the power to register, regulate, and supervise housing finance companies under the National Housing Bank Act, 1987.
The respective State Governments regulate certain types of NBFCs, such as chit funds and Nidhi companies. The State Governments have the power to register, regulate, and supervise these NBFCs under the relevant State laws.
MCQs on the regulators of NBFCs in India
- Which of the following is not a regulator of NBFCs in India?
- Reserve Bank of India
- Securities and Exchange Board of India
- Insurance Regulatory and Development Authority
- National Housing Bank
- Which of the following NBFCs is regulated by the RBI?
- Housing finance company
- Leasing company
- Factoring company
- Investment company
- Which of the following NBFCs is regulated by SEBI?
- Investment company
- Merchant banker
- Stockbroker
- All of the above