Foreign investment limits in asset reconstruction companies increased, with sponsor and FII ownership caps and SR investment conditions revised. The amendments raise the combined foreign investment ceiling in Asset Reconstruction Companies, impose a sponsor shareholding cap preventing any sponsor from holding more than half the equity directly or via foreign routing, allow FIIs to invest in ARC equity subject to an individual FII shareholding cap, and permit FII investment in Security Receipts up to the combined foreign limit while requiring compliance with FII corporate bond limits and sectoral caps under the FDI regulatory framework.