In 2017, CreditAccess Asia N.V. (CAA), a leading microfinance operator in Asia, undertook a vendor legal due diligence on its Indian subsidiaries to facilitate an equity investment by the Asian Development Bank (ADB). This equity investment supported ADB’s initiative to promote financial inclusion across Asia, helping underserved communities, particularly in India. Through this equity infusion, CAA expanded its microfinance operations in India and other Asian markets, furthering financial inclusion goals. As part of the due diligence, Majmudar & Partners provided legal advisory services, focusing on the compliance of Indian subsidiaries with local laws and regulations.
Facilitating the Transaction
Majmudar & Partners played a crucial role in conducting the vendor legal due diligence for CAA’s Indian subsidiaries, ensuring compliance with local regulations. Key contributions included:
- Regulatory Compliance: Ensured the subsidiaries’ adherence to Indian corporate governance, employment, and financial disclosure laws, minimizing legal risks for the transaction.
- Due Diligence Review: Conducted a thorough review of the Indian subsidiaries’ operations and highlighted the potential legal and regulatory concerns.
- Risk Mitigation: Identified and resolved potential compliance issues, safeguarding the equity investment process for both CAA and ADB.
- Legal Documentation: Assisted in preparing and reviewing essential legal documentation to ensure smooth communication and understanding between all involved parties.
The vendor due diligence conducted by Majmudar & Partners played an important role in ensuring CreditAccess Asia N.V.’s compliance with Indian regulations, facilitating the equity investment by the Asian Development Bank. The investment allowed CAA to accelerate its growth, particularly in India’s underserved markets, contributing to enhanced financial inclusion in the region.
With a proven track record in managing complex legal due diligence and cross-border investments, Majmudar & Partners offers expertise in navigating regulatory challenges. Contact us today to ensure your M&A transactions are conducted with precision and compliance.