Asset Reconstruction Companies (ARCs) are specialized financial institutions that play a critical role in resolving stressed assets in the Indian banking system. By acquiring non-performing assets (NPAs) from banks and financial institutions and restructuring or recovering them, ARCs help clean up bank balance sheets, unlock trapped capital, and support the broader credit ecosystem.
ARCs in India are registered and regulated by the Reserve Bank of India under the SARFAESI Act, 2002 and detailed RBI Master Directions. They require a minimum Net Owned Funds of ₹300 crore, robust governance, and strong operational capability to acquire, hold, manage, and resolve financial assets — making ARC registration one of the most specialized RBI approvals in the Indian financial sector.
We provide end-to-end advisory for setting up an Asset Reconstruction Company — from structuring the entity and promoters, building the business plan and policies, filing the RBI application, responding to queries, and supporting post-registration compliance, SARFAESI-specific operations, and fundraising.
Advisory on entity structure, promoter mix, capital plan, and long-term business strategy.
Incorporation of a company under the Companies Act, 2013 with ARC-compliant objects.
Structuring the ₹300 crore NOF, capital raise strategy, and promoter contribution plan.
Detailed 5-year business plan covering asset acquisition, resolution, and revenue model.
Acquisition, resolution, valuation, SR, risk, KYC/AML, IT/IS, and governance policies.
Preparation and filing of CoR application with RBI along with all supporting documentation.
Promoter and director due diligence, Fit & Proper documentation, and representations.
SARFAESI operations setup, trust / scheme structuring, RBI returns, and ongoing compliance.
Acquiring stressed financial assets from banks and FIs through assignment.
Rehabilitation, restructuring, and reorganization of acquired stressed loans.
Issue of Security Receipts (SRs) backed by pools of acquired financial assets.
Enforcement of security interest under the SARFAESI Act for recovery of dues.
Negotiated settlements, one-time settlements, and restructuring of borrower dues.
Acting as a Resolution Applicant under the Insolvency and Bankruptcy Code.
Managing acquired assets and providing NPA resolution advisory services.
Investing in SRs of its own trusts and managing associated trust schemes.
Must be a company incorporated under the Companies Act, 2013.
Minimum NOF of ₹300 crore, verified through auditor & banker certification.
Maintain minimum CRAR of 15% on ongoing basis as per RBI ARC directions.
Promoters and directors must meet RBI’s stringent Fit and Proper Criteria.
Board and management with relevant banking, lending, or recovery experience.
Clear acquisition, resolution, and SR strategy with strong governance framework.
Design entity, promoter structure, capital plan, and target business model.
Incorporate the company with ARC-specific objects in the MOA.
Infuse NOF, obtain certification, and prepare policies, business plan, and frameworks.
File application with the Reserve Bank of India along with all required attachments.
Respond to RBI queries and supervisory review until Certificate of Registration is granted.
Maintain minimum CRAR of 15% and leverage limits as per RBI directions.
Continuously maintain minimum Net Owned Funds of ₹300 crore.
Periodic returns on acquisitions, SRs, resolution status, and financials.
Periodic valuation and credit rating of Security Receipts per RBI norms.
Separate trusts per scheme, independent trustees, and scheme-level disclosures.
Compliance with SARFAESI enforcement and IBC processes as applicable.
Board structure, committees, and RBI-mandated governance standards.
Annual statutory audit, MCA filings, income tax, GST, and transfer pricing.
Partner with our specialists for end-to-end ARC advisory — structuring, capital planning, RBI registration, and SARFAESI-compliant operations, all under one roof.
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