We help you effectively navigate through the complete process of NBFC Registration with RBI.
Get StartedIn modern business markets, the use of the term ‘takeover’ is widespread. It is used in a reference when one business assumes control or management of another business. Similarly, when a company purchases an NBFC, the process is known as an NBFC Takeover. The procedure of NBFC Takeover is laid down by RBI, and it takes around 50-60 days in the process of NBFC Takeover. NBFCs sale/takeover involves a Target Company and an Acquirer Company. The NBFC takeover should be preceded by a due diligence report of the Target Company, which allows the Acquirear Company to make an informed decision.
Now, from aforementioned points you can easily make out whether your company needs approval from RBI before proceeding further with NBFC Takeover or you are eligible to proceed without the approval and proceed for NBFC Takeover.
To take prior approval from RBI for NBFC Takeover, you have to submit an application in this regard to the Regional Office of the Department of Non-Banking Supervision in whose jurisdiction the Registered Office of the NBFC is located. Following are the documents you will have to furnish in the RBI’s office with Company’s letterhead:
Once you get the approval for Takeover from RBI and if there is a change in management or control a public notice shall be given in one leading national newspapers and one local newspaper. The public notice shall be given at least 30 days before affecting the sale of, or transfer of ownership or transfer of control by NBFC and also by other party or jointly by both parties.
Before you initiate the procedure of NBFC takeover keep following things in mind:
When you gather information about the authenticity of the company, simultaneously you can proceed and execute a formal Memorandum of Understanding (MoU) agreement and get it signed along with a certain token of money.
Taking over an NBFC is a lengthy and time-consuming process. However, it does help you avoid the troubles involved in starting a new business. The process of NBFC Takeover has its pros and cons. Firstly, let’s talk about the benefits of NBFC Takeover. Following are some of the benefits of NBFC Takeover:
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