ANNOUNCEMENT 10 Aug 2016In August 2016, the government of India announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Official press release
Reserve Bank of India notification (A.P. (DIR Series) Circular No. 8)
On 10 August 2016, the Union Cabinet of India approved an amendment in the regulations for foreign investment in the Non-Banking Finance Companies (NBFCs). Currently, such foreign investment is allowed under the automatic route, i.e. without approval from the government, for NBFC's in 18 financial services. With the amendment, all "Other services" apart from these 18 are also opened up under the automatic route provided such services are regulated by any financial sector regulators or government agencies. Services that are not regulated by such agencies will be allowed under the approval route. Further,minimum capitalization norms have been removed as regulators already have such fixed norms.