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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