RBI to allow more FDI into CICs
The Dollar Business Bureau With plans to attract more foreign investment, the Reserve Bank of India has laid down rules allowing up to 100% Foreign Direct Investment in Credit Information Companies (CICs). This is allowed only if the ownership of the company is very well diversified. If the ownership is not well-diversified, then there is a FDI cap of 49 percent. A diversified company is where one or more shareholders own more than 10 percent of the voting rights. RBI earlier has said that it may consider allowing foreign investments in the companies that have established a track record of running a Credit Information Bureau in a well-regulated environment. Talking about the investments by Foreign Institutional Investor (FII) and Foreign Portfolio Investment (FPI), RBI ...
RBI relaxes norms to raise funds for infrastructure
The Dollar Business Bureau To aid the overseas companies in raising money for infrastructure projects within the country, the Reserve Bank of India has relaxed the norms for borrowing these funds.The bank after consulting the government and keeping in mind the existing overseas funding sources, has reassessed the guidelines of the ECB (External Commercial Borrowing). This has been done keeping in mind the need for long term lending for infrastructure projects in the country.Firms in the infrastructure sector that qualify for ECB are, NBFCs-Asset Finance Companies (NBFC-AFCs), Core Investment, Non-Banking Financial Companies -Infrastructure Finance Companies (NBFC-IFCs), Companies (CICs) and Holding Companies. These firms qualify to the ECB having a maturity period of 5 years. However, these would be subjected to 100% ...
