Foreign direct investment in asset reconstruction companies allowed under FDI route, with ownership limits and SARFAESI compliance required. Permits foreign direct investment in Asset Reconstruction Companies registered with RBI via the FDI route while excluding FIIs from ARC equity; FIPB will consider applications subject to an overall foreign equity ceiling and additional SARFAESI compliance where an individual investor's stake crosses the specified threshold. Separately, grants general permission to SEBI registered FIIs to invest in Security Receipts issued by ARCs subject to limits on each tranche and per FII participation, with both policies subject to periodic review and FEMA regulatory amendments to follow.