MCA amends Companies (Meetings of Board and its Powers) Rules, 2014; allowing finance companies registered with IFSCA to provide loans and investment to another company

The Ministry of Corporate Affairs (“MCA”)  has issued Companies (Meetings of Board and its Powers) Amendment Rules, 2025, clarifying that the expression “business of financing industrial enterprises” must include, Finance Company registered with the International Financial Services Centres Authority . The amendment is effective from November 03, 2025.

The amendment substitutes the existing provisions as prescribed under Section 186 (11) (a) of the Companies Act, 2013 as follows:

the expression “business of financing industrial enterprises” shall include ̶

• with regard to a Non-Banking Financial Company registered with the Reserve Bank of India, “business of giving of any loan to a person or providing any guaranty or security for due repayment of any loan availed by any person in the ordinary course of its business”; and
• with regard to a Finance Company registered with the International Financial Services Centres Authority, “activities as provided in sub-clause (a), or sub-clause (e) of clause (ii) of sub-regulation (1) of regulation 5 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 in the ordinary course of its business”.’

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Source: MCA