According to the Non-Banking Finance Companies and Collective Investment Vehicles Bill, 2020, the rationale of the new law is that it is expedient to enact a law to provide for the beneficial regulation of nonbanking finance companies and collective investment vehicles, development of a robust nonbanking financial sector and the protection of investors and matters connected therewith and incidental thereto.
The scope of the NBFCs forms of business covers following activities or business - (i) agriculture finance services; (ii) asset management services; (iii) collateral management services; (iv) discounting services; (v) housing finance services; (vi) investment advisory services; (vii) investment finance services; (viii) leasing; (ix) non-banking microfinancing services; (x) pension fund scheme business; (xi) private equity and venture capital fund management services; (xii) real estate investment trust (REIT) management services; and (xiii) any other regulated form of business as may be notified by the Federal Government.

Copyright Business Recorder, 2020