NBFC Takeover Services in India
Looking to expand your financial footprint? Marcken Consulting makes it easy to acquire an existing Non-Banking Financial Company (NBFC). Our expert team ensures a smooth, compliant, and efficient NBFC takeover process that aligns with RBI regulations.
🧭 What is an NBFC Takeover?
An NBFC takeover involves acquiring control over an existing NBFC, either through purchasing a significant shareholding or by altering its management structure. This strategic move allows businesses to enter the financial sector without the lengthy process of registering a new NBFC.
🚀 Why Opt for an NBFC Takeover?
Time-Efficient Entry
You can avoid the drawn-out registration procedure by purchasing an already-existing NBFC.
Established Compliance
Benefit from an NBFC that already meets RBI’s regulatory requirements.
Operational Infrastructure
Leverage existing systems, client bases, and operational setups.
Strategic Expansion
Quickly diversify your financial services portfolio.
🧠 Do you need help choosing the appropriate NBFC type?
💼 Marcken Consulting: Your Trusted Partner in NBFC Takeovers
With a proven track record in NBFC registrations and takeovers, Marcken Consulting offers:
✅ Comprehensive Due Diligence
✅ RBI Approval Facilitation
✅ Legal and Financial Advisory
✅ Post-Takeover Compliance Support
✅ Customized Solutions Tailored to Your Business Goals
📋 Eligibility Criteria for NBFC Takeover
Before proceeding with a takeover, ensure the following criteria are met:
Net Owned Fund (NOF)
At least ₹2 crore is acquired.
Target NBFC’s NOF
Must be positive.
Clean Financial Records
Both entities should have no pending legal issues.
📞 Ready to Expand Your Financial Services?
🛠️ Step-by-Step NBFC Takeover Process
1. Memorandum of Understanding (MoU)
Initiate the process by signing an MoU between the acquiring and target companies, outlining terms and conditions.
2. Due Diligence
To find possible risks and liabilities, do in-depth operational, legal, and financial analyses.
3. RBI Approval
Send an application to the RBI with the necessary documents, such as:
- Board Resolutions
- Shareholding Patterns
- Business Plans
- KYC Details of Directors and Shareholders
Approval is typically required when:
- Obtaining more than 26% of the stock capital that has been paid up.
- Changing more than 30% of the directors.
4. Public Notice
Publish a public notice in two newspapers (one English and one regional language) at least 30 days before the proposed change.
5. Share Transfer Agreement
Execute the agreement to transfer shares and control as per the agreed terms.
6. Post-Takeover Compliance
Update all statutory records, inform stakeholders, and ensure ongoing compliance with RBI regulations.
📑 Documents Required for NBFC Takeover
✔ Incorporation Certificates: MoA and AoA of both companies.
✔ Financial Statements: Three years' worth of audited reports.
✔ Board Resolutions: Approving the takeover.
✔ KYC Documents: Address proofs of directors and shareholders, Aadhaar, and PAN.
✔ Business Plan: Detailed plan post-acquisition.
✔ Bank Statements: Reflecting the NOF.
✔ RBI Approval Letter: Once obtained.
📊 Types of NBFCs Available for Takeover
Take into account the following NBFC kinds according to your company’s goals:
- Loan Companies (LC): Provide loans and advances.
- Investment Companies (IC): Handle shares and securities.
- Asset Finance Companies (AFC): Finance tangible goods such as automobiles and machines.
- Microfinance Institutions (MFIs): Make financial services available to those with modest incomes.
- Housing Finance Companies (HFC): Expertized in home loans.
📈 Benefits of NBFC Takeover with Marcken Consulting
- Expert Guidance: Navigate complex regulations with ease.
- Time Efficiency: Accelerate your market entry.
- Risk Mitigation: Comprehensive due diligence to avoid unforeseen liabilities.
- Customized Solutions: Tailored strategies aligning with your business goals.
- Post-Acquisition Support: Ongoing compliance and operational assistance.
📞 Want to invest in India's financial future?
Frequently Asked Questions
Is RBI permission necessary for every NBFC takeover?
Yes, RBI’s prior written approval is required when the change in shareholding exceeds 26% or the change in management exceeds 30%.
What is the duration required to finish the NBFC takeover procedure?
The entire process typically takes between 3 to 6 months, depending on the complexity of the transaction, the RBI approval timeline, and document readiness.
Can a foreign company acquire an Indian NBFC?
Yes, foreign investment is permitted in NBFCs, but it must comply with the FDI policy and sectoral caps. Prior approval from the RBI and compliance with FEMA guidelines are also required.
What are the risks involved in taking over an NBFC?
Potential risks include undisclosed liabilities, compliance gaps, and operational inefficiencies. Therefore, competent due diligence and expert counsel are essential.
Can the objectives of an NBFC be changed after takeover?
Yes, post-takeover, the acquiring entity can amend the NBFC’s objectives in the Memorandum of Association (MoA) by passing a special resolution and getting approval from the ROC and RBI if needed.
🏁 Take the First Step Towards Your NBFC Acquisition Today!
