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Requirement for Change in Management of NBFCs in India

posted by enterslice 15 days ago
tags: NBFC Registration NBFC

The NBFCs are required to fill in the requisite details and then only apply to the Reserve Bank for approval. After affecting any such change, the NBFC is required to apply to the Reserve Bank of India by submitting an application on the letterhead of the Company, along with the following listed documents.

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Initial Requirements for NBFC Takeover in India

posted by enterslice 3 months ago
tags: NBFC Takeover NBFC

NBFC Takeover

  • The acquirer of NBFC can first go through the documents of the Target Company and once Acquirer confirms the Acquisition of the said NBFC, MOU to be signed with some token money.
  • KYC Documents, Business Plan and Projection for three years to be prepared in reference to incoming directors as suggested by the acquirer.
  • Submission of Documents those prepared to be submitted to the RBI were the registered office of the company is located.
  • Coordinating with and replying to all RBI queries raised for the purpose of NBFC Takeover.
  • After getting RBI approval letter to issue public notice in the two newspapers for 30 days as per the RBI regulations indicating such change of management and inviting any objections if any from the public or any interested parties.
  • Signing of Share Purchase Agreement and handing over of change of management, payment of remaining considerations etc. to be carried out on 31st day of newspaper notice or as mutually agreed by all the parties.
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RBI Regulation for NBFC License in India

The applicant company needs to be a company registered under the Companies Act, 2013 with a minimum paid up capital of Rs. 2 crores.If the applicant is a foreign company, its minimum capital shall be Rs. 5 crores.After registration of the company as Private Limited or Public Limited under Companies Act, 2013, the company needs to open a Fixed Deposit of Rs. 2 Crores. Now, you can move ahead to file the application in prescribed format with all necessary documents to Reserve Bank Of India.If the Reserve Bank of India after due diligence of the application, is satisfied that the documents are complete and are as per the requirement of Section 45-IA of the RBI Act of 1934, it may grant the license to the company to work as a Non-Banking Financial Company and grant Certificate of NBFC registration.

NBFC LicenseThe NBFC becomes eligible to accept deposits from the public, once the Certificate of NBFC Registration is granted to the company. Non-Banking Financial Companies need to comply with all the ru

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