Shanghvi Finance: Shanghvi Finance exits RBI’s upper layer NBFC list

Mumbai: Dilip Shanghvi-promoted NBFC Shanghvi Finance no longer is in the upper layer list of the Reserve Bank of India (RBI), according to the central bank’s classification for 2023-24.

A total of 15 NBFCs are part of the list, down from 16 when the RBI first released it in September 2022. The RBI did not give any reason for the exclusion of Shanghvi Finance from the list. Among the 15 NBFCs in the list is Tata Capital Financial Services. Tata Sons, the holding company of the Tata Group, is classified as a core investment company (CIC) and part of the NBFC-Upper Layer.

“Despite qualifying for identification as NBFC-UL as per scoring methodology, TMF Business Services (formerly Tata Motors Finance) is not being included in the list … due to its ongoing business reorganisation,” RBI said.

RBI rules say that NBFCs classified in the UL are subject to enhanced regulatory requirement, at least for five years from its classification in the layer.

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