Net Owned Funds calculation requires deducting excess intercompany and NBFC investments from owned funds for FEMA applicants. Calculation of Net Owned Funds requires first computing Owned Funds as paid up equity capital plus free reserves and credit balance in the profit and loss account minus accumulated losses, deferred revenue expenditure and other intangible assets. Net Owned Funds are then Owned Funds less investments in subsidiaries, group companies and other non banking financial companies and the book value of debentures, bonds, loans, advances and deposits with subsidiaries and group companies that exceed the prescribed proportion of Owned Funds.