25.

Non Banking Finance Companies

i)

Merchant Banking

100%

Automatic

Subject to:

a. minimum

capitalization norms for fund based

NBFCs - US$ 0.5 million to be brought upfront for FDI up to

51%; US$ 5 million to be brought upfront for FDI above 51%

and up to 75%; and US$ 50 million out of

 which US$ 7.5

million to be brought upfront and the balance in 24 months

for FDI beyond 75% and up to 100%.

b. minimum

capitalization norms for non-fund based NBFC activities-

US$ 0.5 million.

c. foreign investors

can set up 100%

operating subsidiaries without the condition to disinvest a

minimum of 25% of its equity to Indian

entities subject to

bringing in US$ 50 million without any restriction on number

of operating subsidiaries without

bringing additional capital.

d. joint venture operating NBFC's that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow.

e. compliance with the guidelines of the RBI.

f. The minimum capitalization norms would apply would be applicable where the foreign holding in a NBFC(both direct and foreign holding in a NBFC(both direct and indirect) exceeds the limits indicated at (a) above

g. The capital for the purpose of minimum capitalization norms shall consist of ordinary shares only.

ii)

Underwriting Portfolio Management Services

iii)

Investment Advisory Services

iv)

Financial Consultancy

v)

Stock Broking

vi)

Asset Management

vii)

Venture Capital

viii)

Custodial Services

ix)

Factoring

x)

Credit Rating Agencies

xi)

Leasing & Finance

xii)

Finance

xiii)

Housing

xiv)

Finance

xv)

Forex Broking

xvi)

Credit card Business Money changing

 xvii)

business Micro credit

xviii)

Rural credit

25.

Non Banking Finance Companies

i)

Merchant Banking

100%

Automatic

Subject to:

a. minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%; US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%.

b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million.

 c. foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in US$ 50 million without any restriction on number of operating subsidiaries without bringing additional capital.

d. joint venture operating NBFC's that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow.

e. compliance with the guidelines of the RBI.

ii)

Underwriting Portfolio Management Services

iii)

Investment Advisory Services

iv)

Financial Consultancy

v)

Stock Broking

vi)

Asset Management

vii)

Venture Capital

viii)

Custodial Services

ix)

Factoring

x)

Credit Rating Agencies

xi)

Leasing & Finance

xii)

Finance

xiii)

Housing

xiv)

Finance

xv)

Forex Broking

xvi)

Credit card Business Money changing

 xvii)

business Micro credit

xviii)

Rural credit