RBI allows higher FDI limits in credit information companies

The RBI added that investment of foreign institutional investors (FII)/foreign portfolio investors (FPI) should directly or indirectly hold below 10 per cent equity.

The Reserve Bank of India (RBI) on Thursday issued revised guidelines allowing higher foreign direct investment (FDI) limits in credit information companies (CIC) to entities which have an established track record of running a credit information bureau.

The central bank said that up to 49 per cent FDI would be allowed if ownership of the investor company is not well diversified. It stated that FDI of up to 100 per cent would be allowed if ownership of investor company is well diversified.

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In case, the ownership is not well diversified, at least 50 per cent of the directors of the investee CIC in India should be Indian nationals or non-resident Indians/persons of Indian origin subject to the condition that one third of the directors are Indian nationals resident in India. The RBI added that investment of foreign institutional investors (FII)/foreign portfolio investors (FPI) should directly or indirectly hold below 10 per cent equity.