Funding in NBFC - Capital Raising Options in India
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Funding in NBFC refers to the process of raising capital for a Non-Banking Financial Company through various instruments - equity, debt, Non-Convertible Debentures (NCDs), Commercial Paper (CP), securitization, and External Commercial Borrowing (ECB). Adequate capital is the lifeblood of any NBFC, directly impacting its ability to lend, comply with regulatory norms, and sustain business growth.
The Reserve Bank of India (RBI) regulates NBFC capital and borrowing through the RBI Act, 1934 and the Scale Based Regulation (SBR) Framework. Every NBFC must maintain a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 15% with Tier-I capital not less than 10%. The minimum Net Owned Fund (NOF) requirement is ₹10 crore for most NBFC categories, ensuring a strong capital base before engaging in financial activities.
Capital raising for NBFCs is governed by a complex interplay of regulations from RBI (prudential norms, borrowing limits, leverage ratios), SEBI (NCD issuance, IPO, listing requirements), and MCA (Companies Act provisions on share allotment, debentures, and private placement). Understanding these regulatory frameworks is critical for choosing the right funding instrument and executing the capital raise efficiently.
At IncorpX, we provide comprehensive NBFC funding advisory services covering capital structure planning, instrument selection, regulatory compliance, investor documentation, credit rating facilitation, and post-funding filings. Our team of experienced Chartered Accountants (CAs) and Company Secretaries (CSs) has helped over 100 NBFCs raise capital across equity and debt instruments.
What is NBFC Funding?
NBFC Funding is the process by which a Non-Banking Financial Company mobilizes financial resources to support its lending operations, maintain regulatory capital adequacy, and fuel business expansion. Unlike banks that accept low-cost demand deposits (CASA), most NBFCs are non-deposit-taking (NBFC-ND) and must rely on market-based borrowings and equity capital.
The capital structure of an NBFC typically comprises:
Tier-I Capital (Core Capital):
Paid-up equity share capital, share premium, statutory reserves, and retained earnings. This forms the primary loss-absorbing capital and must be at least 10% of risk-weighted assets.
Tier-II Capital (Supplementary Capital):
Subordinated debt (minimum 5-year maturity), revaluation reserves, and general provisions (up to 1.25% of risk-weighted assets). Tier-II cannot exceed 100% of Tier-I capital.
Borrowed Funds:
Bank loans, NCDs, commercial paper, inter-corporate deposits, and ECB that constitute the operational liabilities used for on-lending.
Securitized Funds:
Capital freed through securitization of existing loan assets, enabling recycling of funds without increasing balance sheet leverage.
RBI Prudential Norms on NBFC Borrowing:
CRAR Requirement:
Minimum 15% (Tier-I at least 10%) for all NBFC categories under Scale Based Regulation.
NOF Requirement:
Minimum ₹10 crore for NBFC-ICC; ₹5 crore for NBFC-MFI; ₹2 crore for NBFC-P2P and NBFC-AA.
Concentration Norms:
Single borrower exposure limited to 20% of owned funds (25% for infrastructure); group exposure limited to 25% (30% for infrastructure).
ALM Framework:
Mandatory Asset-Liability Management with maturity bucket matching to prevent liquidity risks.
Important RBI Requirement!
Under RBI's Scale Based Regulation framework, NBFCs classified in the Upper Layer are subject to enhanced regulatory requirements including mandatory listing, board composition norms, and tighter capital adequacy standards. All NBFCs must file quarterly CRAR and ALM returns with RBI through the COSMOS portal. Failure to maintain minimum CRAR can lead to restrictions on lending, dividend distribution, and business expansion.
Sources of Funding for NBFCs in India:
NBFCs in India have access to a diverse range of funding sources. The optimal mix depends on the NBFC's scale category, credit profile, cost sensitivity, and regulatory constraints. Here is a comprehensive comparison:
Funding Category
Instruments
Regulator
Typical Tenure
Key Requirement
Equity
Promoter Capital Infusion
RBI, MCA
Permanent
Source of funds documentation, NOF compliance
PE/VC Investment
RBI, MCA, FEMA
3-7 years (typical exit horizon)
RBI approval for 5%+ acquisition, fit & proper criteria
IPO / SME IPO
SEBI, RBI
Permanent
SEBI ICDR Regulations, minimum net worth, track record
The choice of funding instrument significantly impacts the NBFC's cost of capital, CRAR, ALM profile, and leverage ratio. Equity strengthens capital adequacy but dilutes ownership. Debt provides leverage but increases repayment obligations. Securitization frees capital without increasing liabilities. A well-planned funding strategy balances all these factors within RBI's regulatory framework.
Equity Funding for NBFCs:
Equity funding is the most fundamental form of NBFC capital. It directly strengthens Net Owned Fund (NOF) and Tier-I capital, improving the NBFC's CRAR and ability to absorb losses. Here are the key equity funding channels:
1. Promoter Capital
Direct equity infusion by promoters. The foundation of NBFC capitalization. RBI requires source-of-funds documentation and ensures promoter capital meets NOF requirements. Most common during initial setup and early growth.
2. Private Equity / Venture Capital
PE/VC firms invest through preferential allotment (Section 62, Companies Act). Requires RBI approval for 5%+ shareholding, 'fit and proper' assessment, IBBI valuation, and shareholders' agreement. Typical investment horizon: 3-7 years.
3. Angel Investors
High-net-worth individuals investing in early-stage NBFCs. Subject to SEBI Angel Fund regulations (if through an AIF), RBI shareholding norms, and FEMA compliance for NRI investors. Suitable for NBFCs with innovative fintech models.
4. IPO / SME IPO
Public offering of equity shares on BSE/NSE (mainboard IPO) or BSE SME/NSE Emerge (SME IPO). Governed by SEBI ICDR Regulations. Requires minimum track record, profitability, and extensive disclosure. Provides large-scale capital and listing benefits.
5. Rights Issue
Offer of new shares to existing shareholders in proportion to their holding. Governed by Section 62 of Companies Act and SEBI (if listed). Preserves existing shareholding pattern while raising additional equity capital. Board and shareholder resolutions required.
6. Preferential Allotment
Issuance of shares to a select group of investors. Requires special resolution, valuation by registered valuer, SEBI pricing norms (for listed companies), and compliance with Section 42/62 of Companies Act. Popular for strategic and PE investors.
SEBI and RBI Regulations: For listed NBFCs, equity issuance must comply with SEBI (ICDR) Regulations, 2018 (for IPO) and SEBI (LODR) Regulations, 2015 (for ongoing compliance). RBI requires prior approval for acquisition of 5% or more shares in an NBFC under Section 45-I(c) of the RBI Act, 1934. For foreign investors, FEMA (Non-Debt Instruments) Rules, 2019 apply, with NBFC being under the automatic route for 100% FDI.
Debt Funding for NBFCs:
Debt is the primary source of operational funding for NBFCs - enabling them to on-lend to borrowers. Unlike equity, debt does not dilute ownership but creates repayment obligations and interest costs. Here are the key debt instruments:
1. Bank Term Loans
The most common debt source. Banks lend to NBFCs based on credit assessment, asset quality, promoter track record, and collateral. Interest rates depend on NBFC's credit rating and relationship. Typical tenure: 1-7 years. May require promoter personal guarantee for smaller NBFCs.
2. NBFCs Lending to NBFCs
Larger NBFCs and All India Financial Institutions (NABARD, SIDBI, NHB, MUDRA) lend to smaller NBFCs. This is subject to RBI's concentration norms and single/group borrower exposure limits. SIDBI and MUDRA are key lenders to NBFC-MFIs.
3. Non-Convertible Debentures (NCD)
Fixed-income debt instruments issued through public offer (SEBI regulated) or private placement (Section 42, Companies Act). Requires credit rating, debenture trustee, and trust deed. Can be secured or unsecured. Tenure: 1-10 years. Detailed in the NCD section below.
4. Commercial Paper (CP)
Short-term unsecured promissory note with tenure of 7 days to 1 year. Governed by RBI guidelines. Requires minimum A3 rating and tangible net worth of ₹4 crore. Ideal for managing short-term liquidity needs. Must be issued in dematerialized form through IPA (Issuing & Paying Agent).
5. Subordinated Debt (Tier-II Capital)
Long-term debt (minimum 5 years) that ranks below senior debt. Qualifies as Tier-II capital under RBI norms, improving CRAR without equity dilution. Subject to haircut in last 5 years of maturity. Cannot exceed 100% of Tier-I capital. No step-up options or call features without RBI approval.
6. Co-Lending Arrangements
Partnership with banks under RBI's Co-Lending Model (CLM). Bank retains minimum 80% of loan. NBFC earns higher yield on its 20% share and processing fee income. Requires board-approved policy, master agreement, and blended interest rate. Significantly expands lending capacity without proportionate capital.
NCD Issuance - Public & Private Placement:
Non-Convertible Debentures are one of the most popular debt instruments for NBFCs. The issuance process, requirements, and regulations differ based on whether it is a public or private placement:
Parameter
Public NCD Issue
Private Placement NCD
Governing Regulation
SEBI (Issue & Listing of NCS) Regulations, 2021
Section 42, Companies Act 2013 + SEBI LODR (if listed)
Minimum Credit Rating
AA or above (from SEBI-registered CRA)
Investment grade (BBB- or above)
Minimum Net Worth
₹25 crore
No specific minimum
Maximum Investors
No limit (public at large)
200 per financial year (excluding QIBs)
Listing Requirement
Mandatory on BSE/NSE
Mandatory if issued to more than 500 persons
Filing Requirement
DRHP/Shelf Prospectus with SEBI
Private Placement Offer Letter + PAS-4 with ROC
Debenture Trustee
Mandatory (SEBI registered)
Mandatory
Debenture Trust Deed
Mandatory (before allotment)
Mandatory (before allotment)
Minimum Application Size
₹10,000
As per offer terms (typically ₹1 lakh+)
Typical Timeline
3-6 months
6-10 weeks
Key NCD Compliance: Both public and private placement NCDs require creation of security/charge on NBFC assets (for secured NCDs), appointment of a SEBI-registered Debenture Trustee, execution of Debenture Trust Deed before allotment, maintenance of Debenture Redemption Reserve (DRR) at 10% of outstanding debentures (for public issues), and timely interest payment and principal redemption. Default on NCD payments triggers SEBI enforcement and may lead to RBI action against the NBFC.
SEBI Requirement!
For public NCD issues, SEBI mandates that the NBFC must not have any default in payment of interest or principal on existing debt instruments for the last 365 days. The issuer must also appoint a Registrar and Transfer Agent (RTA), a Lead Manager, and ensure that the NCDs are issued in dematerialized form only.
Securitization for NBFCs:
Securitization allows NBFCs to convert their loan receivables into tradable securities, freeing up capital for fresh lending. It is a powerful tool for capital recycling and improving CRAR without additional equity or debt. RBI governs securitization through the Master Direction - Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021.
Two Routes of Securitization:
1. Pass Through Certificates (PTC)
The NBFC (originator) transfers a pool of loan assets to a Special Purpose Entity (SPE/Trust), which issues PTCs to investors. Cash flows from the underlying loans are "passed through" to PTC holders. Requires credit rating, MHP, MRR compliance, and true sale criteria.
2. Direct Assignment (DA)
Direct sale of loan assets from NBFC's books to a buyer (typically a bank) without the SPE/Trust structure. Simpler execution but must meet RBI's true sale criteria, MHP, and MRR norms. The buyer assumes direct exposure to the underlying borrowers.
Key RBI Requirements for Securitization:
Minimum Holding Period (MHP): Originator must hold the loan on its books for a minimum period before securitizing - 6 months for loans with tenure up to 2 years; 12 months for longer tenure loans.
Minimum Retention Requirement (MRR): Originator must retain minimum 10% of the book value of the loans being securitized (5% for MFI loans), ensuring "skin in the game."
True Sale Criteria: The transfer must achieve a "true sale" - complete legal isolation of assets from the originator's balance sheet, bankruptcy remote from originator.
No Recourse: The originator should not assume risk of the securitized assets beyond the MRR portion. Credit enhancement must be limited as per RBI norms.
Homogeneity: The pool of assets must be reasonably homogeneous in terms of asset type, structure, and risk characteristics.
Credit Rating: PTCs must be rated by a SEBI-registered credit rating agency. The rating determines the investor appetite and pricing.
Step-by-Step NBFC Funding Process:
Raising capital for an NBFC involves a systematic process that ensures regulatory compliance and investor confidence. At IncorpX, we manage the entire process on your behalf:
Step 1: Assess Capital Requirements
Evaluate the NBFC's current NOF, CRAR position, projected loan book growth, and regulatory capital needs. Identify the funding gap by comparing available capital against the capital required to maintain 15% CRAR at the target loan book size. Factor in buffer capital for business contingencies.
Step 2: Choose Funding Instrument
Select the optimal funding instrument based on the NBFC's scale category (Base/Middle/Upper Layer), credit profile, cost of capital, and ALM requirements. Equity for capital adequacy, debt for operational growth, securitization for capital recycling, or a combination. Each instrument has distinct regulatory, cost, and timeline implications.
Step 3: Obtain Regulatory Approvals
Secure necessary approvals: RBI approval for significant shareholding changes (5%+ equity), SEBI approval for public NCD or IPO, MCA filings for share allotment or debenture issuance, stock exchange approvals for listing, and AD bank processing for ECB. Prepare and file all applications with supporting documentation.
Facilitate investor or lender due diligence covering legal, financial, regulatory, and operational aspects. Provide access to audited financials, RBI inspection reports, loan book quality analysis, compliance records, governance framework, and management interviews. Address all queries transparently.
Step 6: Execute the Fund Raise
Complete the capital raise transaction: allot equity shares or issue debt instruments, receive funds, ensure KYC/AML compliance for all investors, obtain listing approval from stock exchanges (for listed instruments), and update the NBFC's books to reflect the new capital structure.
Step 7: Post-Funding Compliance Filings
File all post-funding regulatory returns: Return of Allotment (PAS-3) with MCA within 15 days, RBI reporting on shareholding changes, ECB returns with AD bank, listing documents with stock exchanges, updated CRAR and ALM returns with RBI, and creation/modification of charge with ROC (for secured instruments).
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What Are the Documents Required for NBFC Funding?
The documents required vary based on the type of funding instrument. Here is a comprehensive list covering equity, debt, NCD, securitization, and ECB:
Document Category
Specific Documents
Applicable For
NBFC Identity
RBI Certificate of Registration (CoR), Certificate of Incorporation, PAN, MOA/AOA
Share Subscription Agreement, Shareholders' Agreement, Term Sheet, FEMA declarations
PE/VC, IPO, preferential allotment
Securitization Documents
Pool audit report, PTC offering circular, assignment agreement, servicer agreement
Securitization / Direct Assignment
ECB Documents
Loan agreement with non-resident lender, Form ECB, hedging confirmation, AD bank application
ECB / Masala Bonds
KYC & Compliance
KYC of all directors, promoters and significant shareholders, CKYC records, AML declarations
All funding types
Legal Opinions
Legal due diligence report, title search (for secured instruments), regulatory compliance certificate
Equity, NCD, Securitization
Regulatory Compliance for NBFC Funding:
NBFC funding involves compliance with multiple regulatory frameworks. Non-compliance can lead to penalties, restrictions on business expansion, and even cancellation of registration. Key compliance areas:
Compliance Area
Regulatory Framework
Key Requirements
Capital Adequacy (CRAR)
RBI Scale Based Regulation
Minimum 15% CRAR, Tier-I ≥ 10%, quarterly computation and reporting to RBI
MHP/MRR compliance, true sale verification, originator reporting, pool performance monitoring
At IncorpX, we provide comprehensive post-funding compliance management ensuring timely filing of all regulatory returns and adherence to RBI, SEBI, and MCA norms. Learn more about our NBFC Annual Compliance services.
Benefits of Professional NBFC Funding Advisory:
Engaging expert advisory for your NBFC capital raising ensures optimal structuring, regulatory compliance, and cost efficiency. Here's how IncorpX adds value:
Optimal Capital Structure
Expert analysis of debt-equity mix, CRAR impact modelling, and cost of capital optimization. Ensure your NBFC maintains healthy leverage while maximizing returns on equity.
Full Regulatory Compliance
Navigate complex RBI, SEBI, and MCA regulations with confidence. Every funding instrument is structured to meet all applicable compliance requirements from day one.
Lower Cost of Capital
Access better rates through credit rating facilitation, institutional investor networks, and optimal instrument selection. Save lakhs in interest cost over the funding tenure.
Faster Execution
Streamlined documentation, parallel regulatory filings, and experienced team ensure your fund raise completes on schedule. No missed deadlines, no last-minute surprises.
End-to-End Documentation
From pitch deck and valuation report to debenture trust deed and shareholders' agreement - we prepare every document to institutional standards.
Dedicated Advisory Team
A team of CAs, CSs, and financial specialists assigned to your NBFC. Single point of contact for all capital raising queries, regulatory filings, and investor coordination.
Join 100+ NBFCs that have raised capital with IncorpX!
Incorporate a new company for your NBFC venture. Complete registration with MOA/AOA drafting, PAN, TAN, and all MCA compliances.
Frequently Asked Questions About Funding in NBFC
Raising capital for an NBFC involves navigating complex RBI regulations, SEBI compliance, and Companies Act provisions. We've compiled answers to the most frequently asked questions to help NBFC promoters, CFOs, and directors understand the capital raising process.
Whether you're exploring equity funding, NCD issuance, securitization, or ECB, these FAQs cover everything you need to know about NBFC funding in India.
NBFCs in India can raise capital through multiple channels: Equity funding (promoter capital, PE/VC investment, IPO/SME IPO, rights issue, preferential allotment), Debt funding (bank loans, NCD issuance, commercial paper, subordinated debt), Securitization (PTC, direct assignment), and External Commercial Borrowing (ECB). The choice depends on the NBFC's scale category under RBI's Scale Based Regulation, CRAR requirements, and cost of capital considerations.
Under RBI's revised guidelines, most NBFCs require a minimum NOF of ₹10 crore. NBFC-P2P and NBFC-AA require ₹2 crore, while NBFC-MFI requires ₹5 crore (₹7 crore in North-East). The NOF is calculated as paid-up equity capital plus free reserves, minus accumulated losses, deferred revenue expenditure, and intangible assets. Maintaining adequate NOF is essential for NBFC registration and ongoing compliance.
CRAR (Capital to Risk-Weighted Assets Ratio) is the ratio of an NBFC's capital to its risk-weighted assets. RBI mandates a minimum CRAR of 15% for all NBFCs (with Tier-I capital not less than 10%). Adequate CRAR ensures the NBFC can absorb losses and maintain solvency. Funding decisions - whether equity or subordinated debt - directly impact CRAR and must be planned to maintain or improve this ratio.
Yes, NBFCs can issue NCDs through two routes: Public issue (governed by SEBI LODR Regulations - requires listing, credit rating of AA or above, net worth of ₹25 crore, and compliance with SEBI disclosure norms) and Private placement (under Section 42 of the Companies Act, 2013 - limited to 200 investors per financial year, requires credit rating, and debenture trust deed). NCDs are a popular debt instrument for NBFCs seeking medium-to-long-term funding.
Securitization is the process of pooling loan assets and issuing securities (Pass Through Certificates or PTCs) backed by the cash flows from those assets. RBI's Master Direction on Securitization (2021) governs this process. NBFCs must comply with Minimum Holding Period (MHP) and Minimum Retention Requirement (MRR) norms. Securitization helps NBFCs free up capital, improve CRAR, and recycle funds for fresh lending without increasing leverage.
Equity funding (promoter capital, PE/VC, IPO) increases the NBFC's net worth and directly strengthens CRAR and NOF. It does not require repayment but dilutes ownership. Debt funding (bank loans, NCDs, commercial paper) provides capital without dilution but creates repayment obligations and interest costs. A healthy NBFC maintains an optimal mix - equity for capital adequacy and debt for operational growth - within RBI's leverage norms.
Yes, eligible NBFCs can raise ECB under RBI's ECB framework. NBFC-ICC and NBFC-MFI with minimum investment grade credit rating can access ECB through Track I (medium-term foreign currency denominated) or Track III (INR denominated - Masala Bonds). The minimum average maturity is 3 years for ECB up to USD 50 million. End-use restrictions, all-in-cost ceiling, and hedging requirements apply as per RBI Master Direction on ECB.
Subordinated debt is a loan or debt instrument that ranks below senior debt in priority of repayment during liquidation. For NBFCs, subordinated debt with a minimum maturity of 5 years and meeting specific RBI criteria qualifies as Tier-II capital, which counts towards CRAR calculation. It helps improve capital adequacy without equity dilution, though it cannot exceed 100% of Tier-I capital.
RBI's Scale Based Regulation framework imposes concentration norms and leverage limits on NBFCs. Base Layer NBFCs have a leverage ratio cap. Middle Layer and Upper Layer NBFCs must maintain minimum CRAR of 15% with Tier-I at 10%. Additionally, NBFCs must comply with ALM (Asset-Liability Management) guidelines ensuring maturity matching between assets and liabilities, and single/group borrower exposure norms.
PE/VC firms invest in NBFCs by acquiring equity shares, typically through preferential allotment under Section 62 of the Companies Act, 2013, or share purchase agreements. Key considerations include: RBI's prior approval for acquisition of 5% or more shares (Section 45-I of RBI Act), 'fit and proper' criteria for significant shareholders, valuation by registered valuer, FEMA compliance for foreign investors, and shareholders' agreement terms.
Only NBFCs specifically authorized by RBI as NBFC-D (Deposit-taking NBFCs) can accept public deposits. The Deposit acceptance is governed by the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016. Key limits include: deposits cannot exceed 1.5 times the NOF, maximum tenure of 60 months, minimum tenure of 12 months, and mandatory credit rating of at least investment grade. Most NBFCs are non-deposit-taking (NBFC-ND).
Credit rating requirements vary by instrument: Public NCD issue requires minimum AA rating (SEBI mandate). Private placement NCD requires at least investment grade rating (BBB-). Commercial Paper requires minimum A3 short-term rating. ECB requires minimum investment grade rating. Bank loans - credit rating impacts interest rates and terms. RBI-registered credit rating agencies (CRISIL, ICRA, CARE, India Ratings, Acuité, Brickwork) provide these ratings.
Co-lending (formerly co-origination) is a model where an NBFC partners with a bank to jointly originate and share loans. Under RBI's Co-Lending Model (CLM) guidelines, the bank retains minimum 80% of the loan on its books. Benefits for NBFCs include: access to lower-cost bank funds, improved lending capacity without proportionate capital increase, broader customer reach, and technology-driven loan origination. The NBFC must have a board-approved co-lending policy.
Key documents include:
Information Memorandum / Pitch Deck - business model, growth projections, financials
Audited Financial Statements - last 3 years
RBI Certificate of Registration
Valuation Report by IBBI-registered valuer
Due Diligence Report - legal, financial, regulatory
Board Resolution approving the fund raise
Shareholders' Agreement
Share Subscription Agreement
FEMA declarations (for foreign investors)
The timeline varies by funding type: Bank loans: 4-8 weeks (subject to credit appraisal). Private placement NCD: 6-10 weeks (including credit rating, documentation, and listing). Public NCD issue: 3-6 months (SEBI approvals, DRHP filing, listing). PE/VC equity: 2-4 months (term sheet, due diligence, documentation, RBI approval). Securitization: 4-8 weeks (pool selection, rating, PTC issuance). ECB: 2-3 months (AD bank processing, RBI reporting).
ALM is the practice of matching the maturity profile of an NBFC's assets (loans disbursed) with its liabilities (borrowings). RBI mandates NBFCs to maintain a structured ALM framework with maturity buckets. Poor ALM - such as funding long-term loans with short-term commercial paper - creates liquidity risk. Every funding decision must consider ALM implications to avoid maturity mismatches that can trigger a liquidity crisis.
A newly registered NBFC faces challenges in raising debt due to limited track record. However, options include: Promoter equity and subordinated debt (immediate), bank term loans (with promoter guarantee, after 1 year of operations), private placement NCDs (after obtaining credit rating, typically 1-2 years), and co-lending arrangements (once lending track record is established). Building a clean loan book and maintaining timely NBFC compliance accelerates access to institutional funding.
SEBI's Issue and Listing of Non-Convertible Securities Regulations, 2021 require: Net worth of at least ₹25 crore, Credit rating of minimum AA from a registered CRA, No default in payment of interest or principal on existing debt instruments, DRHP/Shelf Prospectus filed with SEBI, Debenture Trustee appointment, Listing on a recognized stock exchange, and Disclosure of financials, risk factors, and material litigation. The minimum application size is ₹10,000.
Capital structure planning for an NBFC involves: assessing the target loan book size and growth trajectory, calculating CRAR requirements (minimum 15%), determining the optimal debt-to-equity ratio (RBI monitors leverage), evaluating the cost of capital across equity and debt instruments, ensuring ALM compliance across maturity buckets, and maintaining buffer capital above regulatory minimums. At IncorpX, we provide comprehensive capital structure advisory for NBFCs at every stage of growth.
A Debenture Trustee is mandatory for all NCD issuances (both public and private placement). The trustee, registered with SEBI, acts as a fiduciary protecting the interests of debenture holders. Key responsibilities include: monitoring compliance with debenture trust deed terms, ensuring creation of security/charge on NBFC assets, calling meetings of debenture holders, enforcing recovery in case of default, and filing reports with SEBI and stock exchanges. The NBFC must execute a Debenture Trust Deed before allotment.
IncorpX offers end-to-end NBFC funding advisory with a team of experienced CAs, CSs, and financial consultants who understand RBI regulations, SEBI compliance, and capital market dynamics. Our services include: capital structure planning, investor pitch preparation, NCD issuance support, securitization advisory, credit rating facilitation, regulatory filings (RBI, SEBI, MCA), and post-funding compliance management. With 100+ NBFCs served and deep regulatory expertise, we help NBFCs raise capital efficiently while maintaining full compliance. Learn more about our NBFC services.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
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Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
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Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
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Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
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Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
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Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
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Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
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Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
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Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
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Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
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