New Delhi: The government on Thursday relaxed norms for the setting up of subsidiaries by foreign owned Non- banking financial companies (NBFCs).
NBFCs with foreign holding of more than 75 percent and up to 100 percent, with the minimum paid-up capital of USD 50 million, are now allowed to open any number of subsidiaries, an official release said.
As per the existing norms, only 100 percent foreign- owned NBFCs, with a minimum capitalisation of USD 50 million are allowed to establish any number of step down subsidiaries for specific NBFC activities.
"With a minimum capitalisation of USD 50 million, (foreign owned NBFCs) 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," said a notification of the Department of Industrial Policy & Promotion.
First Published: Thursday, October 04, 2012, 14:25