Holding company undertake such specific activities with domestic participation through downstream subsidiaries - permission

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....SS NOTE No. 11 (1999 SERIES) Under the guidelines for foreign equity investment in Non-Banking Financial Companies (NBFC) issued vide Press Note No. 4 (1997 series) as amended from time to time, 100% foreign owned NBFCs would act as a holding company and specific activities would be undertaken by step-down subsidiaries with minimum 25% domestic equity. There have been cases where foreign own....

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....lities to only its downstream subsidiaries / JVs on an "arms length basis" with the option of charging fees for the same. (ii) The above would further be subject to a formal agreement being entered into by the Holding Company with the downstream subsidiaries (JVs) concerned.   (ASHOK KUMAR) Joint Secretary to the Government of India  F. No. 10(32)/97-IP   &nbsp....