Asset Reconstruction Companies

Inclusion in existing policy of FDI up to 74% in Asset Reconstruction Companies, subject to conditions:-

• No sponsor may hold more than 50% of the shareholding in an ARC either by way of FDI or by routing through an FII.
• The foreign investment in ARCs would need to comply with the FDI policy in terms of entry route conditional and sect oral caps
• The foreign investment limit of 74% in ARC would be a combined limit of FDI and FII
• The total shareholding of an individual FII shall not exceed 10% of the total paid-up capital.