Scale Based Regulation reclassifies NBFCs into layered categories and imposes proportional capital, governance and prudential requirements. Scale Based Regulation classifies NBFCs into Base, Middle, Upper and Top Layers by size, activity and risk, applies progressively stricter regulations to higher layers, and prescribes layer-specific prudential and governance measures including revised Net Owned Fund minima with glide paths, a >90-day NPA norm with phased compliance, an Internal Capital Adequacy Assessment Process, enhanced capital quality and leverage norms for Upper Layer entities, harmonised concentration limits referenced to Tier I capital, board and disclosure enhancements, Chief Compliance Officer and compensation policies, and transition and supervisory timelines for movements between layers.
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Provisions expressly mentioned in the judgment/order text.
Scale Based Regulation reclassifies NBFCs into layered categories and imposes proportional capital, governance and prudential requirements.
Scale Based Regulation classifies NBFCs into Base, Middle, Upper and Top Layers by size, activity and risk, applies progressively stricter regulations to higher layers, and prescribes layer-specific prudential and governance measures including revised Net Owned Fund minima with glide paths, a >90-day NPA norm with phased compliance, an Internal Capital Adequacy Assessment Process, enhanced capital quality and leverage norms for Upper Layer entities, harmonised concentration limits referenced to Tier I capital, board and disclosure enhancements, Chief Compliance Officer and compensation policies, and transition and supervisory timelines for movements between layers.
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