IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 May 2016 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 6 May 2016, the Indian Ministry of Commerce and Industry through Press Note 4 (2016) amended the FDI policy to allow investments by FDIs and FIIs in Asset Reconstruction Companies (ARCs) up to 100% through the automatic route i.e. no prior approval required from the Government. Earlier, FDI investments above 49% in an ARC required prior approval of the government.

All other conditions regarding foreign investments in ARCs remain unchanged.

An Asset Reconstruction Company is involved in taking over Non-Performing Assets/distressed assets of banks and financial institutions and later sell repackaged assets.

AFFECTED COUNTRIES

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