MCA Expands Scope of ‘Business of Financing Industrial Enterprises’ u/s 186(11)(a) of the Companies Act, 2013

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  • Last Updated on 10 November, 2025

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Business of Financing Industrial Enterprises

Notification No. GSR 811(E); dated: 03.11.2025

1. Overview

The Ministry of Corporate Affairs (MCA) has notified the Companies (Meetings of Board and its Powers) Amendment Rules, 2025, introducing changes to Rule 11, which deals with loans and investments by a company under Section 186 of the Companies Act, 2013.

2. Key Change: Expanded Scope of ‘Business of Financing Industrial Enterprises’

Under Section 186, certain exemptions apply to companies engaged in the business of financing industrial enterprises.

Previously, this exemption covered only NBFCs registered with the Reserve Bank of India (RBI).

The amendment has now expanded the scope to also include Finance companies registered with the International Financial Services Centres Authority (IFSCA).

3. Impact of the Amendment

  • Finance companies regulated by the IFSCA will now be treated at par with RBI-registered NBFCs for the purpose of Section 186.
  • This widens the compliance relief available to entities operating in IFSC jurisdictions, such as GIFT City.
  • The change is expected to facilitate investment and lending activities by IFSCA-registered finance companies, promoting ease of doing business and capital flow.
Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied