Policy on foreign investment for Asset Reconstruction Companies-amendment of paragraph 6.2.18.1 of ‘consolidated FDI Policy Circular of 2015’

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....Reconstruction Companies-amendment of paragraph 6.2.18.1 of 'consolidated FDI Policy Circular of 2015' 1.0 Present Position: 1.1 Paragraph 6.2.18.1 of 'Consolidated FDI Policy Circular of 2015', effective from May 12, 2015, relating to Asset Reconstruction Companies, presently reads as below: 6.2.18.1 Asset Reconstruction Companies Sector/ Activity % of Equity/FDI Cap Entry Route ....

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....FII/FPI shall be below 10% of the total paid-up capital. (iv) FIIs/FPIs can invest in the Security Receipts (SRs) issued by ARCs registered with Reserve Bank. FIIs/FPIs can invest up to 74 per cent of each tranche of scheme of SRs. Such investment should be within the FII/FPI limit on corporate bonds prescribed from time to time, and sectoral caps under extant FDI Regulations should also be comp....

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....1.2 Other Conditions: (i) Persons resident outside India can invest in the capital of Asset Reconstruction Companies (ARCs) registered with Reserve Bank of India, up to 100% on the automatic route. (ii) Investment limit of a sponsor in the shareholding of an ARC will be governed by the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,....