RBI allows Piramal Enterprises to start NBFC business

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The Reserve Bank of India (RBI) has allowed Piramal Enterprises to commence the business of a non-banking finance company (NBFC) without accepting public deposits, the company informed exchanges on July 26.

The said license was received by the Company today i.e. 26th July, 2022, the company said.

“In accordance with the provisions of Regulation 30 of the Listing Regulations, we wish to now inform you that the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934, has granted Certificate of Registration to the Company to commence the business of nonbanking financial institution without accepting public deposits.,” the company said in the communication.

Earlier, the company had made an application to the Reserve Bank of India, for an NBFC License.

This is in line with the demerger plan of the group that was announced last year. Piramal Enterprises on October 7 announced the demerger of its pharmaceuticals business from the financial services business. The move, aimed at simplification of the corporate structure, would lead to the creation of two separate listed entities, it said.

“This is in-line with expectations and basically transfer of NBFC license from PFPL to PEL as part of their scheme of amalgamation...," Sachin Mehta, director of investment banking at Anand Rathi Advisors, told Moneycontrol.