Foreign investment in NBFC Sector - Further Liberalisation for establishing step down subsidiaries by NBFCs with FDI
Ref: RBI AP DIR 41 dated October 10, 2012
RBI has revised the conditions for the establishing step down subsidiraries by NBFCs with FDI as per details below
No. 137 dated June 28, 2012
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Earlier Condition
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Revised condition
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Sr.No.24.2 (1) (iv)
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10 100% foreign owned NBFCs with a minimum capitalisation of US$ 50 million 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. The minimum capitalization condition as mandated by para 3.10.4.1, therefore, shall not apply to downstream subsidiaries.
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NBFCs (i) having foreign investment more than 75% and up to 100%, and (ii) with a minimum capitalisation of US$ 50 million, 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.The minimum capitalization condition as mandated by para 3.10.4.1 of DIPP Circular 1of 2012 dated April 10, 2012 on Consolidated FDI Policy, therefore, shall not apply to downstre
am subsidiaries
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