Fdi Norms For Forex Brokerages May Be Eased

Further, foreign investment in non-bank financial services will be permitted in merchant banking, underwriting, portfolio management services, investment advisory services, financial consultancy, stock broking, asset management, venture capital, custodial services, factoring, credit reference agencies, credit rating agencies, leasing and finance and housing finance.

The minimum capitalisation for NBFCs with foreign equity less than or equal to 51 per cent has been set at $500,000.

In cases where the foreign equity is more than 51 per cent but less than or equal to 75 per cent, the minimum capitalisation has been fixed at $5 million.

foreign equity is more than 75 per cent, the minimum capitalisation has been set at $50 million.

 

NBFCs that are 100 per cent foreign-owned would act as holding companies and specific activities would be undertaken by step-down subsidiaries within a minimum 25 per cent domestic equity.

The domestic equity in step-down subsidiaries of 100 per cent foreign-owned holding companies may be scheduled by bringing 10 per cent domestic equity upfront and the balance domestic equity over a period of 24 months.