A Non-Banking Financial Company registered under the Companies Act which is engaged in the business of loan & advances, acquisition of shares/ debenture/ bonds or other marketable securities such as hire purchase and insurance business.
NBFC provides working capital loan and credit facilities.
The merger is a combination of two existing entities into one new company. The merger is considered as a corporate strategy of combining two or more NBFCs into a single company in order to enhance the financial and operational strengths of both organizations. Acquiring company acquires the majority of equity shares of one or more companies. Acquired company surrender majority of its equity shares to an acquiring company.
Following are the required documents:
As taking the overall requirement to provide credit into account, along with ensuring the economic boost and development of the economy into account, the call for collaborations between an NBFC and a bank is something that requires everyone’s attention.
The main reasons behind this merger are-