PMLBSEPaul Merchants LtdMediumPositive
Announced Tue, 30 Jun · 18:29 IST

NBFC subsidiary reclassified from Middle Layer to Base Layer by RBI

Regulatory & Legal View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-5.0%1-day move
₹500.00
prior close
base price
After-mkt
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5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-5.0-1.1-2.0-1.5-8.0-2.0-3.0
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AI summary

Paul Merchants Finance Private Limited, a wholly owned subsidiary of Paul Merchants Ltd, has been reclassified by RBI from Middle Layer (NBFC-ML) to Base Layer (NBFC-BL) under RBI's Master Directions on Scale Based Regulation, 2025. The reason is that the subsidiary's asset size is below Rs. 1,000 Cr as per its audited balance sheet for FY 2025-26. The company clarified there is no change in the subsidiary's operations.

Likely market impact

Routine RBI reclassification to a lighter regulatory category since subsidiary assets are under Rs 1,000 Cr. No operational or business change.