Foreign investment in NBFC Sector under Foreign Direct Investment (FDI) Scheme - Clarification
RESERVE Bank of India (RBI) has clarified that the activity ‘leasing and finance', which is one among the eighteen NBFC activities wherein FDI up to 100 per cent is permitted under the automatic route, subject to minimum capitalization norms, covers only ‘financial leases' and not ‘operating leases', in so far as the NBFC sector is concerned.
Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 are being notified separately.
RBI's AP (DIR Series) Circular No.127, Dated: May 15 2012