Acquisitions of non-banking finance companies in India

By Ravi Singhania and Arjun Anand, Singhania & Partners

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.

Ravi SinghaniaManaging partnerSinghania & Partners
Ravi Singhania
Managing partner
Singhania & Partners

No NBFC can do business without obtaining a certificate of registration from the RBI. It should be a company registered under the Companies Act, 1956/2013, 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.


You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.



RAVI SINGHANIA is the managing partner and ARJUN ANAND is a partner at Singhania & Partners in New Delhi

Singhania & Partners Solicitors and Advocates

Singhania & Partners Solicitors and Advocates

P-24, Green Park Extension

New Delhi-110016

Website /

Contact details:

Phone: +91-11-4747 1414