Corrigendum Corrects FDI Guidelines in Press Note 7 (2008) for NBFCs, Details Ownership and Capitalization Norms.
A corrigendum has been issued to correct typographical errors in Press Note 7 (2008) concerning Foreign Direct Investment (FDI) guidelines for Non-Banking Finance Companies (NBFCs). The revised provisions specify minimum capitalization norms for fund-based and non-fund-based NBFC activities, allowing 100% foreign ownership under automatic routes with specific capital requirements. Foreign investors can establish 100% operating subsidiaries without a mandatory 25% equity disinvestment to Indian entities, provided they bring in US$ 50 million. Joint ventures with up to 75% foreign investment can set up subsidiaries for other NBFC activities, subject to compliance with Reserve Bank of India guidelines.
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