RBI Regulation NBFC Takeover India

  Professional investors manage alternative investment funds , which offer a unique flexibility in investing in any type of asset class, such as shares, bonds, money market instruments, and property. A commission may be charged on the sale of units, which will vary from fund to fund. What are the types of Alternative Investment Funds in India? Category I AIF: SME Funds Social Venture Capital Funds Infrastructure funds Venture Capital Funds Angel Funds Category II AIF Private Equity (PE) Funds Real estate Funds Funds for distressed assets Debt Funds Funds of Funds Category III AIF Hedge Funds Private Investment in Public Equity Funds (PIPE) How to Become an Alternative Investment Fund (AIF) The applicant for registration as an Alternative Investment Fund under the SEBI (Alternative Investment Funds) Regulations, 2012, should submit an application to SEBI in Form A, along with other essential documents. Within 21 working days of receiving the application, the applicant will receive a re

When an NBFC is set for acquisition, the process typically begins with a thorough review of the target company's documentation. Once the acquiring party is satisfied and approves the acquisition, a Memorandum of Understanding (MOU) is signed, often accompanied by a token payment. The buyer will then prepare the necessary Know Your Customer (KYC) documents, a comprehensive business plan, and a three-year financial projection for the incoming directors. This blog will explore the Reserve Bank of India's (RBI) regulations governing the takeover of an NBFC. Document Submission and Coordination with RBI Once the NBFC acquisition plan is in place, the relevant documents are prepared for submission to the RBI's regional office, where the NBFC's registered office is located. This step includes coordinating with the RBI and addressing any queries related to the takeover. RBI Approval and Public Notice Requirement Following the submission, the acquiring company must receive an a