Department of Industrial Policy & Promotion in order to provide easy finance to the Indian Industries has liberalized the Foreign Direct Investment (‘FDI’) limits in Non-Banking Financial Company. Para 5.2.26 of the Consolidated FDI Policy has been replaced with the following para subject to specified conditions chartered accountant firms in mumbai:
Other Financial Services: Financial Services activities regulated by Financial Sector regulators viz. Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority direct foreign investment in India, The Pension Fund Regulatory and Development Authority, National Horticulture Board or any other financial sector regulator as may be notified by Government of India subject to certain conditions.
% of Equity / FDI Cap : 100%
Entry Route: Automatic
Further, minimum capitalization norms for Foreign Direct Investment in Non-Banking Finance Companies have been done away with. Investment in “Other Financial Services” activities shall be now subject to conditionalities in direct foreign investment in India, including minimum capitalization norms, as specified by the concerned Regulator or Government Agency.
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