Describe the types of entities involved in the principal business of financial activity which do not require Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI).

The following types of entities that are involved in the principal business of financial activity do not require NBFC License from RBI: Housing Finance Companies - Regulated by the National Housing Bank; Insurance Companies - Regulated by Insurance Regulatory and Development Authority of India (IRDA); Stock Broking - Regulated by Securities and Exchange Board of India; Merchant Banking Companies - Regulated by Securities and Exchange Board of India; Venture Capital Companies - Regulated by Securities and Exchange Board of India; Companies that run Collective Investment Schemes - Regulated by Securities and Exchange Board of India; Mutual Funds - Regulated by Securities and Exchange Board of India; Nidhi Companies - Regulated by the Ministry of Corporate Affairs (MCA); Chit Fund Companies - Regulated by the respective State Governments. The above types of companies have been exempted from NBFC registration requirements and NBFC regulations of RBI as they are regulated by other financial sector regulators. Mortgage Guarantee Companies have been notified as Non-Banking Financial Companies under Section 45 I(f)(iii) of the RBI Act, 1934. Core Investment Companies with asset size of less than ₹100 crore, and those with asset size of ₹100 crore and above but not accessing public funds are exempted from registration with the RBI.