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RBI Allows Family Trusts to Own NBFCs and CICs Case by Case

27 November 20251 min read
BANKING & FINANCERBI Allows FamilyTrusts to OwnNBFCs and CICsCase by Case27 November 2025safalsetu.com

Why in the news

RBI has softened its earlier hesitation about opaque trusts and now reviews family trust ownership of NBFCs and CICs individually.

Key facts

  • Aim: smooth succession planning while keeping regulatory oversight and blocking hidden control.
  • Benefits: easier inter-generational transfer, fewer family disputes, clearer rules for trust-owned NBFCs and CICs.
FeatureDetails
TrusteesFamily members; outsiders generally not allowed
Control transferAllowed; RBI approval at 26% or more
SEBI linkDisclosure and open offer norms for listed shares

Exam angle

  • Entities: NBFC, CIC; threshold ≥26%.

Test yourself

1. RBI approval is required for significant ownership change at what level in family-trust cases?

The notes state ≥26%.

2. Who must be trustees of trusts that take over NBFCs or CICs under RBI's stance?

Trustees must be family members.

3. Which regulator's open offer norms apply when a trust holds listed company shares?

SEBI disclosure and open offer norms apply.

This topic is part of Daily Current Affairs 27 November 2025 (14 topics).

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