Understanding NBFC Registration in India

Non-Banking Financial Companies (NBFCs) are a crucial part of India's financial system. They provide various financial services but do not hold a banking license. A key point regarding NBFCs is their legal status and registration requirements.

Legal Basis for NBFC Registration

In India, all companies, including those that intend to operate as Non-Banking Financial Companies, must first be registered under the primary law governing companies. This registration gives them their legal identity as a company.

Let's look at the options provided:

• Companies Act 2013: This is the primary law in India that governs the incorporation, responsibilities, and winding up of companies. Any entity wishing to be recognized as a company must be registered under this Act or its predecessor, the Companies Act, 1956.
• RBI Act 1934: The Reserve Bank of India (RBI) Act, 1934, regulates the financial sector, including NBFCs. While NBFCs are regulated by the RBI under this Act, particularly Chapter IIIB, their initial registration as a company is not under the RBI Act.
• SEBI Act 2002: The Securities and Exchange Board of India (SEBI) Act, 1992 (the option mentions 2002, but the primary act is 1992, amended later), governs the securities market and its participants. It is not the act under which financial companies like NBFCs are registered.
• Government of India Act 1935: This was an Act of the British Parliament. While historically significant, it is not the current law for company registration in independent India.

Therefore, the fundamental registration of an entity as a company, which is a prerequisite for being recognized as an NBFC (as the name "Non-Banking Financial Company" suggests), happens under the Companies Act.

After registration as a company under the Companies Act, an entity wishing to operate as an NBFC also needs to obtain a license or Certificate of Registration (CoR) from the Reserve Bank of India (RBI) under the RBI Act, 1934. However, the question asks about the Act under which they are "registered" (as companies), and the initial and fundamental registration as a corporate body is under the Companies Act.

Based on this, the correct answer is the Companies Act 2013.