The Reserve Bank of India (RBI) has granted the state-run non-banking finance company REC Limited a “No Objection Certificate” (NOC) so that it may establish a subsidiary in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, Gujarat. REC stated in a regulatory filing to the stock exchanges on Friday that it had received a “No Objection Certificate” dated May 3, 2024, from the Reserve Bank of India (RBI) approving the establishment of a wholly owned subsidiary in the International Financial Services Centre (IFSC), Gujarat International Finance Tec-City (“GIFT”), Gandhinagar, Gujarat. This is in continuation of our letter dated March 19, 2024.
In March of this year, the REC Board of Directors approved the establishment of a wholly-owned subsidiary of REC Limited to engage in authorized business dealings as a Finance Company in IFSC, GIFT City, Gandhinagar.
The subsidiary will support REC Limited in growing its international reach. In addition, the PSU will have more access to creative financing possibilities and improved cooperation with foreign investors thanks to this offshore platform for obtaining competitive investment.
