Tuesday, April 16, 2013

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.

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