Foreign investment liberalisation for Asset Reconstruction Companies permits full automatic foreign equity, subject to SARFAESI Act constraints. The policy amendment permits up to 100% foreign equity in Asset Reconstruction Companies on the automatic route. ARCs are entities registered under section 3 of the SARFAESI Act. Investment conditions, including sponsor shareholding and investor participation, are governed by the SARFAESI Act and RBI directions; the total holding of any individual FII/FPI remains below ten percent, and FIIs/FPIs may invest in Security Receipts subject to RBI guidelines and applicable limits. The amendment is effective immediately.