Jayesh Jain

Today's Headlines from : *Economic Times* 📝 Work begins on credit index for MSMEs to boost funding 📝 NPA provisioning for banks moderates in Q2 driven by PSBs 📝 SME IPO: Sebi mulls doubling application size up to Rs 4 lakh, floats consultation paper 📝 Satvik Green Energy files draft papers to raise Rs 1,150 crore via IPO 📝 UPI payment failures due to technical issues fall below 1% 📝 India to contribute 20 pc of global workforce growth between 2023-2050, China share to decline: Report 📝 Havells India to invest Rs 480 cr on new refrigerator manufacturing plant in Rajasthan 📝 PeLocal secures $2 million funding led by Unicorn India Ventures 📝 Rajeev Misra’s OneIM upsizes to $8 billion to boost investments 📝 Deeptech startup Theranautilus raises $1.2 million in round led by Pi Ventures 📝 Food-delivery startup Swish raises $2 million in maiden round led by VC firm Accel *Business Standard* 📝 IHCL plans to double its consolidated revenue, portfolio of hotels by 2030 📝 74% companies want govt to enable real-time audit reporting, says Deloitte 📝 Birla Opus adds fresh coat to raise capacity; commences ops of 4th plant 📝 Adani Infra to pick 30% stake in PSP Projects, make an open offer 📝 Mavco and Avenue Capital Group acquire Hubergroup for global growth 📝 Godrej Industries raises Rs 1,000 crore through NCDs in two tranches 📝 Reliance-backed Addverb to launch next-gen humanoid robots in 2025 📝 RMZ, Colt DCS to invest $1.7 billion in Indian data centre market 📝 India, UK to relaunch FTA talks in 2025, 'address remaining issues' 📝 Rupee depreciates to new low of 84.42 per dollar amid geopolitical tensions 📝 Smartphone PLI scheme rings in record electronics exports, shows data 📝 Subsidy for cargo electric 3-wheelers restored, cap halved to Rs 25k *Financial Express* 📝 NTPC Green to scale up RE capacity to 19 GW by FY27 📝 Yubi Group sets 40-50 per cent growth target in next 3 years 📝 HSBC cuts Sensex 2025 target by 10 per cent 📝 India’s healthcare infrastructure gets a post-pandemic boost: Report 📝 RMZ, Colt DCS to invest $1.7 billion in Indian data centre market 📝 Bharti Global completes acquisition of 24.5% stake in UK’s BT Group *Mint* 📝 Suditi Industries acquires kidswear brand Gini & Jony 📝 UN chief urges aligning climate action with limiting global warming to 1.5°C 📝 Aegis Vopak Terminals files draft papers with SEBI for ₹3,500 crore IPO 📝 Tata Power, Druk Green Power to develop 5,000 MW green energy projects in Bhutan 📝 NBCC aims to double revenue to ₹25,000 crore by expanding real estate ventures 📝 CCPA moves to standardize diamond labelling to protect consumers 📝 NABH and RSSDI collaborate to improve quality of diabetes care in India 📝 Meta to appeal against CCI penalty order

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Direct public floats of Debt papers like NCDs have become rare. Companies are raising money by issuing NCDs on private placement, sometimes at crazy rates. There is an urgent need of Direct public float of NCDs with face value of Rs. 1000 or 10000 by large corporates. This will not only help reduce the cost of funding, but will also deepen the retail debt market. Most of the merchant bankers are also associated with outfits, who manage funds. They are interested in private placements for parking of Funds under management in an easy way bypassing the interest of the public and issuer itself.

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👇 Link for some of important and less talked about videos on my channel 👇 Part-2 1. How to do projections in CMA data https://lnkd.in/dZsyRisT 2. How to analyse statutory audit report under companies act https://lnkd.in/dTcHGjzr 3. Study and history of MCLR, Repo, LIBOR and ARR https://lnkd.in/eB9d7wpP 4. Agri Infra fund scheme https://lnkd.in/d4FAgyyP 5. Lease rental discounting product https://lnkd.in/dneEZNQt 6. Out of order account, SMA classification and NPA norms https://lnkd.in/dT-vQebj 7. How to do analysis of stock statement https://lnkd.in/dZ2rS_Qe 8. History of credit score or CIBIL score https://lnkd.in/d6aWQ43s 9. Concept of buyers credit through GIFT city https://lnkd.in/eF6xTuG

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In our context, there are multiple liquidity ratios which all banks and financial institutions need to abide by at all times namely CRR, SLR, net liquid asset to  deposit ratio, CD ratio. Basel III ratios namely net stable funding ratio and liquidity coverage ratio are not applicable fully as on date however I believe most banks would be computing these internally for their domestic consumption in attempts to analyze the granularity of their liquidity profiles.  1. CRR is a basic cash requirement to be maintained by banks with central bank which does not earn anything. present requirement is a floor of 4% for commercial banks. 2. SLR factors cash, bank balance and unencumbered government securities comparable to total deposit. Present requirement is a floor of 12% for commercial banks. 3. Net liquid asset to deposit ratio factors cash, bank balance, money at call and short notice, investment into Government securities and placement up to 90 days. This ratio factors any short term borrowings payable upto 90 days too. Present requirement is a floor of 20% for commercial banks.  This ratio becomes vital as any shortfall below 20% floor is subject to addition to risk weightage in capital adequacy framework. 4. CD ratio is very common in pedestrians and banking fraternity as a yardstick barometer for liquidity. It factors facilities such as refinance, debentures issued for resources and not capital purposes, and external commercial borrowings on top of deposits and loans. 5. NSFR and LCR are not fully enforced however banks compute these regularly. Ideal is floor of 100% for both of these ratios. I understand that banks hold few other assets that could have been considered as liquid such as freely tradable equity investments and gold which can be converted into cash without much impairment at fair market value. These asset classes are not counted in net liquid asset to deposit ratio computation despite being highly liquid in my view. While long term Government bonds are listed in local bourse, there are hardly any transaction seen on that front. Banks can borrow against these securities from the central bank at ease however but salability of these instruments are not regularly tested. Similarly, I have hardly come across situations where banks can withdraw or premature their placements before maturity. Yet both of these keep constituting to be components of liquid assets.

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Side effects of EBIDTA : EBITDA Margin is key metric in usage to measure operating performance of the entity  and also act as a relative measure to compare companies in the industry. EBITDA is used as a fancy word for measuring the companies performance. However as per me it is to be to be least considered to make a investment and other decision makings. Perse for Financial Limped entities Interest Expenses may play key role for decision making and For Manufacturing industries Pattern of Depreciation and Amortization will play pivotal role on the financial performance of the company.

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Pre-MPC thoughts Dec'24 : All options on the table ********************************************* Today’s RBI MPC has come to larger significance of course, as the growth slow-down narrative was proved post weak Q2 number. Market is pricing in different outcomes from today's MPC as follows – A. CRR cut 25-50 bps 💎💎💎 Most logical step to ease liquidity before start of rate cut cycle, with 50 bps CRR cut to release INT 1.16 trn in the banking system. This is mostly priced in by both equity and debt markets now, specially as liquidity became tighter in Oct – Nov due to RBI Fx intervention. Surplus liquidity could anyways bring operative rate closer to 6.25, if RBI allows it to settle as per money market forces. Downside of this step - RBI will concede the battle for Fx intervention for now, as surplus liquidity will add to further INR depreciation towards $/INR 85-85.50 handle by Jan'25. B. Other permanent liquidity measures like OMO purchase 💎💎💎 CRR being very strong tool for liquidity measure and impacts more directly to bank’s P&L, there could be other steps like OMO purchase calendar (~ INR 1 trn) announcement. OMO purchase will be the best possible outcome for INR bond market, as curve across duration will come off by 8-10 bps. C. Repo cut by 25 bps 💎💎💎 It will be difficult for RBI to justify repo cut when last CPI print was 6+ and Nov CPI expected 5.5+ levels. However, RBI has ignored past data prints earlier and acted in anticipation of future macro data points from India, or based on global macro developments, as they changed stance to Neutral in Oct MPC in a rising inflationary environment.. !! So, if RBI wants to pre-empt and act fast to support growth, then today should see start of rate cut cycle. Overall both Govt & RBI approach has been to act fast & be nimble footed, in response to local & global data release. So, we should expect either Repo or CRR cut in today’s policy meet. As reaction of CRR cut, India 10Y Gsec should settle in 6.70 -73 (new benchmark) range for now & will wait for next triggers. LinkedIn News India || Mint ||BW Businessworld #RBIMPC #IndiaRates #Gsec #Bondmarkets #DebtCapitalMarkets #Equitymarkets #Repo #GDPGrowth #CPI #Treasury #StrategicFinance #ThoughtLeader #ForexHedging

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What most people don't understand about CVA is that at inception it is cost of *marginal* counterparty or credit risk. Doing business that may become subject to CVA alters leverage, so pre-trade CDS spread, even if CDS is tradeable for the counterparty, has no information on the post-deal CDS spread, unless this effect is modelled explicitly. The main implication is that CVA is a derivative and can be treated as such in your "derivatives pricing framework" if and only if a straight bond also is. #quants #quantitativeanalytics #xva #cva #dva

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Here are the Top 10 PMS Performers of April'24: InCred Asset Management & Alternative Investments | Aditya Khemka InvestSavvy Portfolio Management LLP | Ashish Goel Green Lantern Capital LLP | Nitin Pandey | Abhishek Bhardwaj Kriis - The Portfolio Management Company | CA RAKESH DOSHI Alchemy Capital Management Pvt Ltd | Alok Agarwal, CFA, CMT Centrum Wealth Sowilo Investment Managers LLP | Sandip Agarwal Samvitti Capital Private Limited | Prabhakar Kudva AccuraCap | Raman Nagpal This report is generated by PMS AIF WORLD based on data received by respective AMCs. Disclaimer: This post is for educational purposes only. #investment #portfoliomanagement #finance #wealthmanagement #alpha #wealthcreators #portfolio

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👇 Link for some of important and less talked about videos on my channel 👇 Part-2 1. How to do projections in CMA data https://lnkd.in/dZsyRisT 2. How to analyse statutory audit report under companies act https://lnkd.in/dTcHGjzr 3. Study and history of MCLR, Repo, LIBOR and ARR https://lnkd.in/eB9d7wpP 4. Agri Infra fund scheme https://lnkd.in/d4FAgyyP 5. Lease rental discounting product https://lnkd.in/dneEZNQt 6. Out of order account, SMA classification and NPA norms https://lnkd.in/dT-vQebj 7. How to do analysis of stock statement https://lnkd.in/dZ2rS_Qe 8. History of credit score or CIBIL score https://lnkd.in/d6aWQ43s 9. Concept of buyers credit through GIFT city https://lnkd.in/eF6xTuG

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Current ratio Gearing Ratio Leverage ratio Inventory, Debtor and creditor cycle EBITDA margin Debt service coverage ratio Interest coverage ratio Fixed assets coverage ratio Asset coverage Ratio (Playlist link is in comment box) Please visit and subscribe to my youtube channel to get access to more than 315 videos on banking finance. Just search through my name on youtube. These are the key ratios checked by the banks while assessing the working capital loan file of borrower. It is important to understand them from banker point of view and also to know their desired levels of maintenance, methods of improvement etc. Best Regards: CA Ankush Jain

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A crisp and clear summary. Very well presented

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Open ended mutual funds are perpetual without any duration and maturity. These funds are not listed on exchanges. Open ended funds can be bought anytime even after the new fund offer. If the fund manager thinks it cannot handle asset under management beyond a certain threshold, the fund stops accepting any new investments under that fund. Continuous buying and selling of units is possible, which in turn affects the total units and Assets Under Management(AUM). Thus AUM goes up or down due to continuous investments and redemptions and also due to change in value of underlying securities. As such, fund manager does not have a great amount of flexibility when it comes to investing for long terms like in close ended mutual funds. Open ended funds have to maintain a certain cash reserves for redemptions unlike that in close ended funds. Units of open ended funds are always bought/sold with the fund manager at prevailing Net Asset Value(NAV) without any premium or discount. Systematic investments is possible in case of open ended funds which is not very possible in case of close ended funds. The below table shows financial particulars of all open ended funds in operations in Nepal as in September 2024. I am told that there are 5 more open funds in pipeline at securities board for approval. It can be seen that these schemes have had success over the years whereby these funds have seen rise in the fund size on top of NAV. For one of the funds below, the current size is almost 20 times the initially subscribed size within 5.18 years of coming into operation. The total proportion of such AUM to total deposit in economy or market capitalization in stock exchange is 0.17% and 0.25% respectively. Quite miniscule, isn't it? Though Systematic Investment Plans(SIPs) could be deemed in nascent stage of development, it is gaining popularity among investors and could pave ways for a radical change in thought process in investing for retail investors. SIPs are quite popular investment vehicle in bigger and stable capital markets with excellent penetration in retail investors aiming for financial freedom in life. SIPs have all potential to do exceedingly well here as well with increased access and awareness in the years to come. All of the fund managers are subsidiaries of commercial banks in Nepal. As sponsors the banks are ought to invest ≥ 15% of the total fund size. This is trickier for the banks for as they cannot pull out of the funds being sponsors and since there is no maturity, there would not be redemptions ever. On top of this, as the fund size would grow, the amount invested would also have to grow perpetually. Since they would not get listed, the capital charge would be higher compared to a close ended mutual fund. Point to ponder for banks would be to compare the expected benefits in the form of dividends vis-a-vis opportunity cost of funds and capital charges while making investment decisions.

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How To Evaluate The Bank’s Performance Through Ratio Analysis? ▪️Capital To Risk Weighted Assets Ratio : Above 9% ▪️Credit -Deposit Ratio : 65-70% ▪️Gross Non Performing Assets Ratio : 3-5% ▪️Liquidity Coverage Ratio (Short term liquidity management upto 30 days) & Net Stable Funding Ratio (liquidity management upto one year) ▪️Investment To Deposit Ratio : 25-30% ▪️Current Account Saving Bank Account Ratio : 45-60% ▪️Cost To Income Ratio : Cost-to-income ratio compares the bank's operating expenses to its operating income. The cost-to-income ratio quickly illustrates how effectively a bank converts revenue to profit. A lower ratio means that the bank is spending less to generate more revenue, which is a sign of efficiency. ▪️Return On Assets Ratio : ROA ratio measures how well the bank is using its assets to generate profits. It is calculated by dividing the net income by the average total assets. A higher ratio means that the bank is earning more from its assets, which is a sign of efficiency. ▪️Return On Equity Ratio : ROE ratio measures how well the bank is rewarding its shareholders. It is calculated by dividing the net income by the average shareholders' equity. A higher ratio means that the bank is generating more profits for its owners, which is a sign of efficiency. ▪️Non-Interest Income Ratio And Efficiency Ratio : The non-interest income ratio measures how much of the bank's income comes from sources other than interest, such as fees, commissions, or trading. It is calculated by dividing the non-interest income by the total operating income. A higher ratio means that the bank is diversifying its income streams, which is a sign of efficiency. Efficiency Ratio : Banks monitor their ability to generate non-interest income vs non-interest expense. The most popular ratio is used non-interest expense divided by the sum of net interest income and non-interest income. ▪️Provisioning Coverage Ratio : Above 70% PCR is the percentage of funds that a bank sets aside for losses due to bad debts. A high PCR can be beneficial to banks to buffer themselves against losses if the NPAs start increasing faster. ▪️Leverage Ratio (LR) : LR requires a bank’s tier-I capital to be at least 3.5% of its total exposure [ 4% For Domestic-Systemic Important Banks], which includes its equity, debt, derivative exposure & off balance sheet liabilities. Thanks for reading…

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How To Evaluate The Banks Performance Through Ratio Analysis? ▪️Capital To Risk Weighted Assets Ratio : Above 9% ▪️Credit -Deposit Ratio : 65-70% ▪️Gross Non Performing Assets Ratio : 3-5% ▪️Liquidity Coverage Ratio (Short term liquidity management upto 30 days) & Net Stable Funding Ratio (liquidity management upto one year) ▪️Investment To Deposit Ratio : 25-30% ▪️Current Account Saving Bank Account Ratio : 45-60% ▪️Cost To Income Ratio : Cost-to-income ratio compares the bank's operating expenses to its operating income. The cost-to-income ratio quickly illustrates how effectively a bank converts revenue to profit. A lower ratio means that the bank is spending less to generate more revenue, which is a sign of efficiency. ▪️Return On Assets Ratio : ROA ratio measures how well the bank is using its assets to generate profits. It is calculated by dividing the net income by the average total assets. A higher ratio means that the bank is earning more from its assets, which is a sign of efficiency. ▪️Return On Equity Ratio : ROE ratio measures how well the bank is rewarding its shareholders. It is calculated by dividing the net income by the average shareholders' equity. A higher ratio means that the bank is generating more profits for its owners, which is a sign of efficiency. ▪️Non-Interest Income Ratio And Efficiency Ratio : The non-interest income ratio measures how much of the bank's income comes from sources other than interest, such as fees, commissions, or trading. It is calculated by dividing the non-interest income by the total operating income. A higher ratio means that the bank is diversifying its income streams, which is a sign of efficiency. Efficiency Ratio : Banks monitor their ability to generate non-interest income vs non-interest expense. The most popular ratio is used non-interest expense divided by the sum of net interest income and non-interest income. ▪️Provisioning Coverage Ratio : Above 70% PCR is the percentage of funds that a bank sets aside for losses due to bad debts. A high PCR can be beneficial to banks to buffer themselves against losses if the NPAs start increasing faster. ▪️Leverage Ratio (LR) : LR requires a bank’s tier-I capital to be at least 3.5% of its total exposure [ 4% For Domestic-Systemic Important Banks], which includes its equity, debt, derivative exposure & off balance sheet liabilities. Thanks for reading…

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How To Evaluate The Bank’s Performance Through Ratio Analysis? ▪️Capital To Risk Weighted Assets Ratio : Above 9% ▪️Credit -Deposit Ratio : 65-70% ▪️Gross Non Performing Assets Ratio : 3-5% ▪️Liquidity Coverage Ratio (Short term liquidity management upto 30 days) & Net Stable Funding Ratio (liquidity management upto one year) ▪️Investment To Deposit Ratio : 25-30% ▪️Current Account Saving Bank Account Ratio : 45-60% ▪️Cost To Income Ratio : Cost-to-income ratio compares the bank's operating expenses to its operating income. The cost-to-income ratio quickly illustrates how effectively a bank converts revenue to profit. A lower ratio means that the bank is spending less to generate more revenue, which is a sign of efficiency. ▪️Return On Assets Ratio : ROA ratio measures how well the bank is using its assets to generate profits. It is calculated by dividing the net income by the average total assets. A higher ratio means that the bank is earning more from its assets, which is a sign of efficiency. ▪️Return On Equity Ratio : ROE ratio measures how well the bank is rewarding its shareholders. It is calculated by dividing the net income by the average shareholders' equity. A higher ratio means that the bank is generating more profits for its owners, which is a sign of efficiency. ▪️Non-Interest Income Ratio And Efficiency Ratio : The non-interest income ratio measures how much of the bank's income comes from sources other than interest, such as fees, commissions, or trading. It is calculated by dividing the non-interest income by the total operating income. A higher ratio means that the bank is diversifying its income streams, which is a sign of efficiency. Efficiency Ratio : Banks monitor their ability to generate non-interest income vs non-interest expense. The most popular ratio is used non-interest expense divided by the sum of net interest income and non-interest income. ▪️Provisioning Coverage Ratio : Above 70% PCR is the percentage of funds that a bank sets aside for losses due to bad debts. A high PCR can be beneficial to banks to buffer themselves against losses if the NPAs start increasing faster. ▪️Leverage Ratio (LR) : LR requires a bank’s tier-I capital to be at least 3.5% of its total exposure [ 4% For Domestic-Systemic Important Banks], which includes its equity, debt, derivative exposure & off balance sheet liabilities. Thanks for reading…

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🛑 A2Z of NBFC Takeover 🟢 In the dynamic landscape of Non-Banking Financial Companies (NBFCs), takeovers play a crucial role in reshaping the industry and driving growth. An NBFC takeover involves one company acquiring or taking control of another, leading to significant changes in management and operations. Here's a closer look at the reasons, processes, regulatory requirements, and challenges associated with NBFC takeovers: 𝐑𝐞𝐚𝐬𝐨𝐧𝐬 𝐟𝐨𝐫 𝐍𝐁𝐅𝐂 𝐓𝐚𝐤𝐞𝐨𝐯𝐞𝐫𝐬: 1. 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧: Broadening business operations into new territories or markets. 2. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐀𝐜𝐜𝐞𝐬𝐬: Gaining entry to new customer segments or untapped markets. 3. 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: Enhancing product portfolios or service offerings. 4. 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐞𝐬 𝐨𝐟 𝐒𝐜𝐚𝐥𝐞: Achieving operational efficiency and cost reduction through consolidation. 5. 𝐀𝐜𝐪𝐮𝐢𝐫𝐢𝐧𝐠 𝐄𝐱𝐩𝐞𝐫𝐭𝐢𝐬𝐞: Accessing specialized skills, technology, or expertise not readily available within the acquiring NBFC. 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐨𝐟 𝐍𝐁𝐅𝐂 𝐓𝐚𝐤𝐞𝐨𝐯𝐞𝐫: 1. 𝐃𝐮𝐞 𝐃𝐢𝐥𝐢𝐠𝐞𝐧𝐜𝐞: Conducting comprehensive evaluations of financial, legal, and regulatory aspects of the target NBFC. 2. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐀𝐩𝐩𝐫𝐨𝐯𝐚𝐥𝐬: Securing necessary approvals from the Reserve Bank of India (RBI) and other relevant authorities. 3. 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭: Entering into agreements, such as share purchase agreements, with the target NBFC. 4. 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞𝐬: Informing stock exchanges, shareholders, and other stakeholders about the proposed takeover. 5. 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧: Finalizing the transaction and effecting the change in control or management. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐍𝐁𝐅𝐂 𝐓𝐚𝐤𝐞𝐨𝐯𝐞𝐫: 1. 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐍𝐞𝐭 𝐎𝐰𝐧𝐞𝐝 𝐅𝐮𝐧𝐝𝐬: The acquiring Entity must have at least Rs. 5 crore. 1. 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐍𝐞𝐭 𝐎𝐰𝐧𝐞𝐝 𝐅𝐮𝐧𝐝𝐬: The target NBFC must not have negative net owned funds, Which should be Rs. 2 Cr till 2025. 3. 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐢𝐭𝐲: Ensuring the takeover does not disrupt the management of the target NBFC. 4. 𝐑𝐁𝐈 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Adhering to RBI guidelines on asset classification, provisioning norms, capital adequacy, liquidity, and risk management. 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐢𝐧 𝐍𝐁𝐅𝐂 𝐓𝐚𝐤𝐞𝐨𝐯𝐞𝐫: 1. 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧: Determining the target NBFC's value and negotiating the acquisition price. 2. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧: Seamlessly integrating operations, systems, and processes. 3. 𝐑𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐨𝐟 𝐊𝐞𝐲 𝐏𝐞𝐫𝐬𝐨𝐧𝐧𝐞𝐥: Keeping key employees and customers post-acquisition. 4. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Navigating complex regulatory requirements and securing approvals. 5. 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Managing acquisition-related risks and ensuring a smooth transition. Feel free to watch the full video to gain in-depth insights into the NBFC takeover proceedings.

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