Foreign equity in 17 NBFC activities allowed

By Our Special Correspondent

NEW DELHI, AUG. 29. The Government has permitted foreign equity investment in micro credit and rural credit lending operations. These operations cover extension of credit facilities at the micro level to small producers and small micro-enterprises in rural and urban areas. The prevailing guidelines applicable to foreign investment in approved activities of non-banking financial companies will henceforth be applicable to foreign equity participation in the micro credit and rural credit activities.

Under the guidelines for foreign equity in non-banking financial companies, foreign equity investment is permitted in 17 activities. These include merchant banking, underwriting, portfolio management services, investment advisory services, financial consultancy, stock broking, asset management, venture capital, custodial services, factoring, credit reference agencies, credit rating agencies, leasing and finance, housing finance, forex broking, credit card business and money changing business.

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Section  : Business
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