Foreign investment in NBFCs: full foreign ownership allowed via automatic route subject to minimum capitalization, RBI compliance and subsidiary conditions. Corrigendum substitutes the Annex entry for Sl. No. 25 to confirm NBFC activities eligible for foreign investment under the automatic route and restates the conditional framework: application of minimum capitalization norms for fund based and non fund based NBFCs with prescribed upfront and staged capital infusion, permission for wholly foreign owned operating subsidiaries subject to a specified capital infusion and subsidiary compliance, allowance for joint venture NBFCs within specified foreign holding thresholds to set up subsidiaries meeting capital inflow requirements, mandatory compliance with central bank guidelines, and ordinary shares as qualifying capital.
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Foreign investment in NBFCs: full foreign ownership allowed via automatic route subject to minimum capitalization, RBI compliance and subsidiary conditions.
Corrigendum substitutes the Annex entry for Sl. No. 25 to confirm NBFC activities eligible for foreign investment under the automatic route and restates the conditional framework: application of minimum capitalization norms for fund based and non fund based NBFCs with prescribed upfront and staged capital infusion, permission for wholly foreign owned operating subsidiaries subject to a specified capital infusion and subsidiary compliance, allowance for joint venture NBFCs within specified foreign holding thresholds to set up subsidiaries meeting capital inflow requirements, mandatory compliance with central bank guidelines, and ordinary shares as qualifying capital.
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