MCA Expands Scope of ‘Business of Financing Industrial Enterprises’ u/s 186(11)(a) of the Companies Act, 2013
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- By Chetan Kulasri
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- Last Updated on 10 November, 2025
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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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