As the non-banking financial company (NBFC) industry has boomed in India, there has been a significant increase in the number of NBFCs. With the industry growing at a rapid pace, the question for most NBFCs is how to sell their company. In order to successfully sell your company, you need to understand your target acquirer and know how to promote it to them.
What Is A Non-Banking Financial Company?
A non-banking financial company, or NBFC, is a financial firm outside the banking system. It offers a wide range of financial services and is often the only financial institution that caters to a specific segment of the market. A NBFC is, in essence, a financial institution that is not a bank. It is a private company with a limited liability company registered under the Companies Act, 2013. NBFCs are regulated by the Reserve Bank of India, the Financial Services Regulatory Authority (FSRA), and the National Company Law Tribunal (NCLT).
NBFCs are nonbank financial companies that seek permission from business entities to buy and sell their assets to the entity that has taken control of the business. When the assets and liabilities are transferred to the acquirer, the balance sheet shows a zero result. The organizations that share the business entities show their success and defeat in the business of buying and selling financial assets and the business of nonbank financial institutions.
The banking sector in the past year has grown at a rapid pace, meeting the financial needs of a diverse range of customers across the country who don't have access to the banks and their services. The license is provided by the Reserve Bank of India (RBI). The NBFCs are organizations that work in the fields of finance, loans, and advances, stocks, bonds, and the purchase of shares, debentures, and securities from the government and other market entities. They also accept deposits, deliver credits, operate in the insurance industry, engage in hire-purchase contracts and lease agreements, and perform other tasks to channel the limited financial resources for wealth creation. The NBFCs meet the growing financial demand of the financial sectors.
The Reserve Bank of India's guidelines state that the process for purchasing and selling NBFCs is straightforward and demanding at the moment.