An NBFC is registered under the Companies Act which is involved in the business of loan & advances, acquirement of shares or debentures or bonds or other marketable securities such as hire purchase and insurance business.
- The concept of merger is an amalgamation of two existing entities into a one new company.
- The merger is considered as a corporate tactic of amalgamating two or more non-banking financial companies into a single entity in order to increase the financial and operational strengths of both organizations.
- Acquiring company obtains the majority of equity shares of one or more companies.
- Acquired company submits majority of its equity shares to the acquiring company.
Example of Acquiring Company and Acquired Company: