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Revision in Foreign Direct Investment Policy (FDI) for Asset Reconstruction Companies

Department of Industrial Policy & Promotion, Ministry of Commerce and Industry (DIPP), on 6th May, 2016, has vide press note no. 4 (2016 series) liberalized the extant FDI Policy  on ‘Asset Reconstruction Company‘(ARC) by amending the paragraph 6.2.18.1 of ‘Consolidated Foreign Direct Investment (“FDI”) Policy w.e.f. 12th May, 2015.

Amendment in paragraph 6.2.18.1 for ‘Asset Reconstruction Company‘(ARC):

Prior to the issuance of Press Note 4 (2016 Series), 49% FDI was permitted in the ARC under the automatic route; and government approval was required for FDI beyond 49%. Now, up to 100% FDI is permitted under the automatic route.

Besides, certin other relevant terms & conditions have also been liberalized /modified.

The said press note is effective from 6th May, 2016 & appended at the following link: FDI Press Note 4_2016

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