| Date: |
28-04-2008
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| Notification No: |
RBI A P D (Series)Circular No 40/2008
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2007-2008/302 |
| Subject: |
Foreign investment in Credit Information Companies - Amendment to the Foreign Direct Investment Scheme
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RBI/2007-2008/302
A.P. (DIR Series) Circular No.40
April 28, 2008
To,
All Category – I Authorised Dealer Banks
Madam / Sir,
Foreign investment in Credit Information Companies
- Amendment to the Foreign Direct Investment Scheme
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Schedule I to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide FEMA Notification No. 20/2000-RB dated May 3, 2000, as amended from time to time.
- It has been decided in consultation with the Government of India to allow foreign investment in Credit Information Companies in compliance with the Credit Information Companies (Regulations) Act 2005 and subject to the following :
- The aggregate Foreign Investment in Credit Information Companies would be 49%.
- Foreign Investment upto 49% would be allowed only with the prior approval of FIPB and regulatory clearance from RBI.
- Investment by SEBI Registered FIIs would be permitted only through purchases in the secondary market to an extent of 24%.
- Investment by SEBI Registered FIIs would be within the overall limit of 49% for Foreign Investment.
- No FII can individually hold directly or indirectly more than 10% of the equity.
A copy of the Press Note 1 (2008 series) dated March 12, 2008 issued by the Government is enclosed.
- AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
- Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 are being issued separately.
- The directions in this circular have been issued under Sections 10(4) and 11(1) of Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge
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