FDI up to 100 percent allowed in CIC under certain conditions

Q.  RBI has laid down rules allowing FDI up to 100 percent in CICs. What does CIC stand for in this context?
- Published on 20 May 16

a. Central Information Commission
b. Credit Information Council
c. Credit Information Companies
d. None of the above

ANSWER: Credit Information Companies
 
Aiming to attract more foreign investment, RBI on May 19th laid down rules permitting FDI up to 100 percent in credit information companies if ownership of the investor company is well diversified.
  • RBI also said it considered allowing higher FDI limits to entities with track record of running a CIC in a well regulated environment.
  • FIIs/FPIs investing in CIC should not seek representation on the board of directors based on their shareholding according to RBI.

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