What are the committees required to be constituted by Non-Banking Financial Companies?

1. Audit Committee: All Applicable NBFCs shall constitute an Audit Committee, consisting of not less than three members of its Board of Directors. The Audit Committee must ensure that an Information System Audit of the internal systems and processes is conducted at least once in two years to assess operational risks faced by the NBFCs. 2. Nomination Committee: All Applicable NBFCs shall form a Nomination Committee to ensure 'fit and proper' status of proposed/ existing directors. The Nomination Committee constituted under this paragraph shall have the same powers, functions and duties as laid down in Section 178 of the Companies Act, 2013. 3. Risk Management Committee: To manage the integrated risk, all Applicable NBFCs shall form a Risk Management Committee, besides the Asset Liability Management Committee. Few other committees are prescribed in other regulations depending on asset base or other parameter. For example - Asset Liability Management Committee (ALCO) for NBFCs with asset base of ₹ 100 cr or more & NBFC- D as per Para 1 of Asset Liability Management (ALM) System for NBFCs Guidelines. Stakeholders Relationship Committee for NBFCs having more than 1000 shareholders, debenture holders, deposit-holders and any other security holders at any time during the FY as per Section 178(5) of Companies Act, 2013, CSR Committee for NBFCs with net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year as per Section 135 of Companies Act, 2013, Committees as per Listing regulations for Listed NBFCs etc.