Piramal Enterprises' Subsidiary Secures RBI Approval for NBFC-ICC Operations
Piramal Enterprises Limited's subsidiary, Piramal Finance Limited (PFL), has received approval from the Reserve Bank of India to operate as a Non-banking Financial Institution–Investment and Credit Company (NBFC-ICC) without accepting public deposits. PFL will surrender its Housing Finance Company (HFC) Certificate of Registration, marking a complete transition from an HFC to an NBFC-ICC. This strategic move could potentially broaden PFL's operational scope, diversify revenue streams, and enhance its market position in the financial services sector.

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Piramal Enterprises (PEL) has announced a significant development for its wholly-owned subsidiary, Piramal Finance Limited (PFL). The Reserve Bank of India (RBI) has granted approval for PFL to commence operations as a Non-banking Financial Institution–Investment and Credit Company (NBFC-ICC) without accepting public deposits.
RBI Approval Details
According to a regulatory filing by Piramal Enterprises, the RBI issued a Certificate of Registration (CoR) to Piramal Finance Limited on April 4, 2023, under Section 45 IA of the Reserve Bank of India Act, 1934. This certification allows PFL to operate as an NBFC-ICC, marking a strategic shift in its business model.
Transition from Housing Finance Company
With this new approval, Piramal Finance Limited will cease its operations as a Housing Finance Company (HFC). The company has surrendered its HFC Certificate of Registration, signaling a complete transition to its new role as an NBFC-ICC.
Implications for Piramal Enterprises
This development represents a significant milestone for Piramal Enterprises and its subsidiary. The transition from an HFC to an NBFC-ICC could potentially:
- Broaden PFL's scope of operations
- Allow exploration of new avenues in the financial services sector
- Diversify the company's revenue streams
- Enhance its competitive position in the market
Regulatory Compliance
Piramal Enterprises has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Conclusion
This strategic move by Piramal Finance Limited, under the umbrella of Piramal Enterprises, reflects the company's adaptability to changing market dynamics and regulatory environments in the financial services sector. Stakeholders will be keen to observe how this transition impacts the company's operations and financial performance in the coming quarters.
While the immediate market response to this news is yet to be seen, the shift in PFL's business model could have significant implications for Piramal Enterprises' future financial performance and market positioning.
Historical Stock Returns for Piramal Enterprises
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.49% | +2.83% | +12.07% | -3.95% | +18.30% | +103.56% |