Northern Arc Capital Share Price in Focus on RBI Approval to Start Factoring Operations

Northern Arc Capital Limited has received approval from the Reserve Bank of India (RBI) to undertake factoring business. The company informed the BSE and NSE on June 11, 2025, through an official stock exchange filing.

This approval allows the company to commence and carry on the business of factoring, which involves the purchase of receivables from companies to help them manage working capital needs. The update was issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details from the Filing

As per Annexure A of the filing:

• The approval has been granted by the Reserve Bank of India.
• It permits the company to start providing factoring services.
• There is no mention of cancellation, suspension, penalties, or any adverse remarks.
• The document does not specify any time limit for the validity of the approval.

Company Communication

The filing was signed by Prakash Chandra Panda, the Company Secretary and Compliance Officer of Northern Arc Capital. The company also confirmed that the same information has been made available on its website.

Northern Arc Background

Northern Arc Capital is a listed financial services firm. With this regulatory clearance, it can now expand into factoring, adding to its existing operations in credit and structured finance. Factoring generally involves businesses selling their unpaid invoices to financial entities at a discount to access immediate funds.

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Northern Arc Capital Share Price Performance 

As of 09:14 AM on June 12, 2025, Northern Arc Capital share price stood at ₹237.10, a 2.10% increase. The stock has seen a 2.22% decline over the past 6 months and a 27.64% decline over the past year.

Conclusion

The Reserve Bank of India’s approval enables Northern Arc Capital to begin its factoring business activities. There are no conditions or penalties attached to the approval, and the company has complied with the disclosure norms by informing the exchanges and publishing the update online.

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