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Centre relaxes norms for setting up of subsidiaries by foreign NBCS

Centre relaxes norms for setting up of subsidiaries by foreign NBCS
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The government on Thursday relaxed norms for the setting up of subsidiaries by foreign owned non-banking financial companies  [NBFCs].

NBFCs with foreign holding of more than 75 per cent and up to 100 per cent, with the minimum paid-up capital of USD 50 million, are now allowed to open any number of subsidiaries, an official release said.

As per the existing norms, only 100 per cent foreign- owned NBFCs, with a minimum capitalisation of USD 50 million are allowed to establish any number of step down subsidiaries for specific NBFC activities.

‘With a minimum capitalisation of USD 50 million,  [foreign owned NBFCs] can set up step-down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital,’ said a notification of the Department of Industrial Policy & Promotion.
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