Foreign Investments in Asset Reconstruction Companies (ARC)

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..... nt (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank of India vide Notification No.20 dated 3rd May 2000 as amended from time to time and A.P.(DIR Series) Circular N0.16 dated November 11, 2005 . 2. In terms of the aforesaid circular : (a) Foreign Direct Investment (FDI) upto 49% in the equity capital of Asset Reconstruction C .....

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..... ARCs would need to comply with the FDI policy in terms of entry route conditionality and sectoral caps. The foreign investment limit of 74% in ARC would be a combined limit of FDI and FII. Hence, the prohibition on investment by FII in ARCs will be removed. The total shareholding of an individual FII shall not exceed 10% of the total paid-up capital. The limit of FII investment in SRs may be e .....

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..... orised Dealer banks may bring the contents of this circular to the notice of their constituents and customers concerned. 7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Rudr .....

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