Cabinet approves proposal to amend rules for foreign investment in NBFCs

Q.  Cabinet has approved the proposal to amend foreign investment rules in which sector?
- Published on 11 Aug 16

a. E-commerce
b. NBFC
c. Mobile commerce
d. None of the above

ANSWER: NBFC
 
Cabinet has approved a proposal to amend rules for foreign investment in non banking finance companies
  • Amendments in existing FEMA regulations on NBFCs will enable flow of foreign investment in other financial services on automatic route provided such services are regulated by financial sector authorities like SEBI, RBI and PFRDA
  • Foreign investment in other financial services that are not under regulators or government agency can be made by the approval route
  • Minimum capitalisation norms under FDI policy have been eliminated as most regulators have fixed maximum capitalisation norms
  • Present regulations on NBFCS holds that FDI will be permitted only for 18 specified NBFC activities

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