Millennium Post

Centre relaxes norms for setting up of subsidiaries by foreign NBCS

Centre relaxes norms for setting up of subsidiaries by foreign NBCS
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.
PTI

PTI

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