Today, in India, due to the instability in the economic sector since the last few years, businesses are being sold, bought, taken over, merged, or collaborated. The small banks, that were proliferating 5-6 years ago, have been taken over by the bigger ones or been merged. Their number has reduced by at least 30-40%, if not more. Similarly, the NBFC sector also has been impacted by these compromises and arrangements. Reserve Bank of India (RBI) has laid down specific procedures to be followed, for all these buying, selling, and other collaborations. The sale of NBFC is when an NBFC is being sold to another company in India. An NBFC can only be sold to another registered NBFC or an established Non-NBFC Company, as per RBI provisions.
NBFC sale would bring two companies together. For this transaction to be executed successfully, the balance sheet of the NBFC on sale has to stand at null. So that the buyer can take it over all its assets and liabilities.
To sell your NBFC, you need a buyer or an Acquirer. Your company or NBFC which is on sale is referred to as the Target Company.