NEW DELHI: State-run non-banking finance company REC Limited has received a ‘No Objection Certificate’ (NOC) from the Reserve Bank of India (RBI) for setting up a subsidiary in International Financial Services Centre (IFSC) in GIFT City, Gandhinagar, Gujarat. In a regulatory filing to the stock exchanges on Friday, REC said, “In continuation to our letter dated March 19, 2024, this is to inform that the Company has received “No Objection Certificate” dated May 3, 2024 from the Reserve Bank of India (RBI) for setting up a wholly owned subsidiary in International Financial Services Centre (IFSC), Gujarat International Finance Tec-City ("GIFT"), Gandhinagar, Gujarat.”

The Board of Directors of REC had approved the incorporation of a wholly-owned subsidiary company of REC Limited for dealing in permissible activities as a Finance Company in IFSC, GIFT City, Gandhinagar, in March this year.

The subsidiary will help REC Limited in expanding its global footprint. It will also serve as an offshore platform for securing competitive funding and will give the PSU increased access to innovative financing options and enhanced collaboration with international investors.