Mergers and acquisitions (M&A) in the finance sector are controlled and regulated by the Reserve Bank of India (RBI). The RBI has over a period of time laid down the law by the virtue of which the establishment, functions and investments in non-banking finance companies (NBFCs) are managed in the country.
Managing partner
No NBFC can do business without obtaining a certificate of registration from the RBI. It should be a company registered under the , and must have a net owned fund (NOF) of not less than ?20 million (US$300,000 – prior to April 1999, ?2.5 million). However, there are categories of NBFCs that have been exempted from the requirement of registration with the RBI, as they are regulated by other regulators.
Systematically important non-deposit taking NBFCs do not accept or hold public deposits and their asset size is of ?5 billion or more as per last audited balance sheet. Any activity of such NBFCs is likely to have an impact on the economy of the country, hence the classification.
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is the managing partner and is a partner at in New Delhi
Singhania & Partners Solicitors and Advocates
P-24, Green Park Extension
New Delhi-110016
Website /
Contact details:
Phone: +91-11-4747 1414
Email: ravi@singhania.in
Email: arjun@singhania.in
