As per the existing foreign investment guidelines, FDI in NBFC sector was permitted only in certain notified business activities and subject to minimum capitalization norms. In supersession of the erstwhile guidelines, the Central Government has now permitted 100% FDI under Automatic Route in ‘Other Financial services’ i.e. financial services activities regulated by the financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India.

October 25th, 2016