Piramal Enterprises Ltd recently announced that Piramal Capital & Housing Finance has received approval from the Reserve Bank of India (RBI) to begin operations as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC). In a regulatory filing, the company stated that the RBI granted a Certificate of Registration (CoR) to Piramal Finance Limited (PFL), a wholly-owned subsidiary, under Section 45 IA of the Reserve Bank of India Act, 1934. The approval allows PFL to operate as an NBFC-ICC, but without accepting public deposits.
As part of this transition, Piramal Finance will discontinue its operations as a Housing Finance Company (HFC) and has surrendered its HFC Certificate of Registration.
In addition to this development, Piramal Enterprises also reported that it had infused Rs 600 crore into Piramal Finance through a rights issue. This capital infusion is intended to support PFL’s business operations and general corporate needs. The company clarified that its shareholding in PFL will remain unchanged following this transaction.
