Net Owned Fund (NOF)

As per explanation given in Section 45-IA of the Reserve Bank of India Act, 1934, the Net Owned Fund (NOF) means:

1. The aggregate of the paid-up equity capital and free reserves as disclosed in the latest balance sheet of the company after deducting therefrom
   • accumulated balance of loss
   • deferred revenue expenditure
   • other intangible assets
2. further reduced by the amounts representing
   • Investment of such company in shares of
     • its subsidiaries
     • companies in the same group
     • all other Non-Banking Financial Companies; and
   • The book value of debentures, bonds, outstanding loans and advances (including hire purchase and lease finance) made to, and deposits with
     • subsidiaries of such company; and
     • companies in the same group

to the extent such amount exceeds ten percent of (1) above

Note: “subsidiaries” and “companies in the same group” shall have the same meanings assigned to them in the Companies Act, 1956 (1of 1956).

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