SG Finserve Limited has received the Reserve Bank of India’s approval to begin its factoring business under the Factoring Regulation Act, 2011. The nod, granted on December 17, 2025, is subject to additional conditions that the central bank will communicate later. The company plans timely operational rollout post-compliance.
SG Finserve Limited announced that the Reserve Bank of India (RBI) has approved its application to undertake factoring activities, marking a significant milestone in the company’s financial service expansion. The approval, given on December 17, 2025, aligns with the regulatory provisions of the Factoring Regulation Act, 2011.
Factoring allows businesses to manage their receivables efficiently by selling unpaid invoices to a third party (the factor), ensuring quicker cash flow and improved liquidity. With this regulatory clearance, SG Finserve is poised to broaden its financing portfolio and cater to SMEs seeking alternative funding solutions.
The RBI’s approval, however, comes with certain additional conditions that will be conveyed separately. SG Finserve has stated it will ensure full compliance and proceed with the operational setup accordingly.
Key Highlights / Major Takeaways
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Regulatory milestone: RBI approves SG Finserve’s entry into the factoring business.
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Compliance clause: Approval subject to specific additional conditions to be detailed later.
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Strategic expansion: The move enhances SG Finserve’s presence in short-term credit and receivables management.
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Next steps: The company will operationalize factoring services post-RBI compliance confirmation.
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Market impact: Potential to strengthen SME financing amid rising demand for alternative credit channels.
Source: NSE Corporate Filings, BSE Announcements, Reserve Bank of India.