NBFC Takeover?
An NBFC takeover simply means an acquirer NBFC (the NBFC which wants to take over) purchases the target NBFC (an already existing RBI-registered NBFC). After the takeover, all the assets, liabilities, shares, etc., of the target NBFC will belong to the acquirer NBFC.
However, in certain cases, an NBFC may also consider surrendering its NBFC license if it no longer wishes to operate within the regulatory framework, or if the business model has changed significantly. Surrendering an NBFC license must be done in accordance with RBI regulations to ensure there are no outstanding liabilities or compliance issues.
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Locating a suitable NBFC available for sale.
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Due Diligence of Target NBFC -Financial and Legal DD
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Taking a decision based on DD Report
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Collecting & Analyzing Documentation from Buyer and Target NBFC
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Preparing a Detailed Business Plan with Financial Projections
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Drafting NBFC Takeover Application for submission to RBI
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Reverting on Queries submitted by RBI.
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Getting NOC from RBI for Takeover and applying for Change in Management/ Control.
Why Opt for an NBFC Takeover?
With credit demand at an all-time high in India, acquiring a pre-registered RBI-approved NBFC offers an efficient route to enter or expand in the financial sector. The streamlined takeover process, now simplified by the Reserve Bank of India, allows you to bypass complex registration and gain immediate market access in just 50-65 days.
Establishing a new NBFC is lengthy and requires extensive approvals. An acquisition enables instant market access with a fully licensed entity.
Avoid licensing challenges by inheriting all existing approvals with an established NBFC.
Start with experienced teams, infrastructure, and an existing client base.
Expand into lending, investment, or other financial services by acquiring a licensed NBFC.
Diversification Opportunities
Leverage NBFC’s compliance history to ensure smooth, regulation-aligned operations.
Schedule 30-minute call with our expert
Checklist of documents for NBFC takeover
Acquiring an NBFC involves several critical steps that must be executed with precision. Here’s a step-by-step breakdown of how we guide you through the entire process.
List of Proposed Shareholders and Directors
Detailed information on the individuals who will be shareholders and board members after the takeover.
Source of Funds
A comprehensive statement of the sources of funds that proposed shareholders will use to acquire the NBFC shares.
Declarations of Non-Affiliation
A declaration from each proposed shareholder and director stating they are not associated with any deposit-taking entity.
An additional declaration that they are not affiliated with any entity previously rejected by the RBI.
Background Declarations
All proposed shareholders and directors signed statements confirming they have no criminal convictions or background and that they qualify under Section 138 of the Negotiable Instruments Act.
Banker's Report
A banker’s report for each proposed shareholder and director.
Financial Statements
The NBFC’s financial statements and annual reports for the past three years.
Our Expertise in NBFC Takeover: A Tailored Approach
With over 15 years of industry experience, NBFC Advisory has a team of seasoned professionals dedicated to simplifying the acquisition process. Our comprehensive services include.
Comprehensive Due Diligence
Before proceeding with any acquisition, understanding the target company’s financial health, regulatory compliance, and operational integrity is crucial. Our team conducts thorough due diligence, examining.
Expert Transaction Structuring
Our team ensures that every acquisition is structured to maximize your benefits while minimizing risks. We work with you to.
End-to-End Regulatory Assistance
Sailing India’s regulatory system can be complex, but we handle the entire RBI approval process on your behalf. This includes.
Seamless Post-Takeover Integration
Acquiring an NBFC is just the beginning. Our team helps you integrate the acquired NBFC into your existing business seamlessly. This includes.
Why NBFC Advisory?
Accelerated, Hassle-Free Process
Experience a quicker, stress-free acquisition with our refined approach, coordinated documentation, and expert regulatory support, paving the way for swift market entry.
In-Depth Expertise and Industry Insight
Leverage our 15 years of experience in NBFC advisory. Our seasoned team helps you navigate intricate regulations, assess risks, and implement proven strategies for a successful takeover.
Customized Acquisition Solutions
We recognize that every acquisition is distinct. We tailor our approach to align with your business objectives, ensuring a seamless transition with minimized risks.
Attention to Detail
Rely on NBFC Advisory’s skilled professionals to manage every takeover aspect meticulously, allowing you to proceed confidently, knowing the complexities are expertly handled.
