ANNOUNCEMENT 10 Aug 2016

In August 2016, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Official press release
http://pib.nic.in/newsite/PrintRelease.aspx?relid=148699

Reserve Bank of India notification (A.P. (DIR Series) Circular No. 8)
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10650&Mode=0


Inception date: 10 Aug 2016 | Removal date: open ended

FDI: Entry and ownership rule

 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.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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