Corporate Services · Banking

Services For Banks provide corporate law and compliance support to banks navigating borrower due diligence and enforcement.

Banks and financial institutions require specialised corporate law advisory for borrower due diligence, security creation and perfection, enforcement of security interests, insolvency proceedings under the IBC, and regulatory compliance under RBI master directions — we provide the company law and documentation support banks need to protect their interests.

Banks and non-banking financial companies face a distinct set of corporate law challenges — from verifying the legal standing and compliance history of borrowing companies to creating and perfecting security interests, managing the legal aspects of loan restructuring, and initiating recovery proceedings under the SARFAESI Act, DRT, or IBC when borrowers default.

Lending decisions backed by thorough legal and corporate compliance due diligence significantly reduce the risk of loan accounts turning into NPAs. Conversely, poorly perfected security interests, incorrect charge registrations, and missed borrower compliance gaps can leave banks without recourse when enforcement becomes necessary.

At Beyonte Compliances, we work with banks and financial institutions to provide corporate law support across the credit lifecycle — from pre-sanction due diligence and charge perfection through to enforcement, insolvency proceedings, and recovery.

What Our Banking Services Cover

Borrower Due Diligence

Reviewing the borrowing company's incorporation documents, ROC filings, director status, existing charges, litigation, and compliance history before sanction.

Charge Creation & ROC Registration

Drafting and registering charges on borrower assets — Form CHG-1 and CHG-9 — with the Registrar of Companies within the 30-day statutory window.

Security Documentation Review

Reviewing hypothecation agreements, pledge deeds, mortgage documents, and personal guarantee arrangements for legal completeness and enforceability.

IBC / CIRP Support

Supporting financial creditors in filing insolvency applications before the NCLT under Section 7 of the Insolvency and Bankruptcy Code and participating in the CIRP process.

SARFAESI Compliance Support

Assisting banks with the procedural requirements under the SARFAESI Act for enforcement of security interests — notices, possession, and public auction compliance.

Loan Restructuring Documentation

Documenting one-time settlement (OTS) terms, restructuring agreements, and supplemental security documentation for accounts under resolution.

Director & Guarantor Liability Assessment

Reviewing the personal liability exposure of directors and guarantors in default accounts — including disqualification status, asset positions, and guarantee enforceability.

RBI Compliance Advisory

Advising banks on compliance with RBI master directions on lending, KYC norms, connected lending, and large exposure framework requirements.

Our Process

Pre-Sanction Due Diligence

Conducting a thorough corporate law and compliance check on the borrower entity and its promoters before the credit committee sanction.

Security Documentation

Reviewing and finalising all security documents — hypothecation, pledge, mortgage, and guarantees — for legal soundness and enforceability.

Charge Registration

Filing Form CHG-1 or CHG-9 with the ROC within 30 days of charge creation to perfect the bank's priority interest in the borrower's assets.

Account Monitoring Support

Providing periodic compliance and litigation updates on borrower accounts — particularly for stressed or watch-list accounts — to support early warning systems.

Recovery & Enforcement Support

Supporting the bank's legal team in SARFAESI enforcement, DRT proceedings, or NCLT insolvency filings for NPA accounts.

Why It Matters

✓Pre-sanction due diligence identifies legal risks before they become credit losses

✓Timely charge registration protects the bank's priority claim over borrower assets

✓Correctly perfected security significantly improves recovery rates on enforcement

✓IBC support enables financial creditors to initiate and participate in CIRP efficiently

✓SARFAESI procedural compliance reduces the risk of borrower challenges to enforcement

✓Director liability assessment identifies avenues for personal recovery from promoters

✓OTS and restructuring documentation protects the bank's legal position post-resolution

✓RBI compliance advisory reduces regulatory risk for the institution under master direction audits

Frequently Asked Questions

Charge registration with the Registrar of Companies within 30 days of creation is mandatory under Section 77 of the Companies Act. An unregistered charge is void against the liquidator and any other creditor of the company — meaning the bank loses its secured priority in the event of default, insolvency, or competing claims from other creditors.

SARFAESI allows secured creditors to enforce their security interests directly — by taking possession and selling assets — without court intervention, making it faster for enforcement of specific secured assets. IBC is a broader insolvency process that deals with the entire debt of the corporate debtor and results in either resolution (business sale) or liquidation.

Section 7 of the Insolvency and Bankruptcy Code allows a financial creditor to file an application before the NCLT to initiate a Corporate Insolvency Resolution Process (CIRP) against a defaulting corporate debtor. The minimum default amount for triggering Section 7 is currently ₹1 crore. Upon admission, an Interim Resolution Professional (IRP) is appointed to manage the debtor company.

Yes. Following the Supreme Court's ruling in Lalit Kumar Jain v. Union of India, personal guarantors of corporate debtors are subject to insolvency proceedings under the IBC. Banks can simultaneously initiate insolvency proceedings against the corporate borrower under Section 7 and against the personal guarantor under the Personal Guarantor framework.

Protect your lending portfolio with robust corporate law support at every stage.

Talk to our team about due diligence, security perfection, and recovery support for your banking portfolio.