Cabinet relaxes FDI norms via automatic route for NBFCs
The Dollar Business Bureau Extending the list of NBFCs that can attract foreign investment, the Cabinet has allowed FDI via automatic route for ‘other financial services’, if these are under regulatory bodies such as Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). Currently, the NBFCs (Non-Banking Financial Companies) regulations specify that FDI (Foreign Direct Investment) would be permitted on automatic route for just 18 listed activities of NBFC, after fulfilling the mentioned minimum norms for capitalisation. Chaired by Prime Minister Narendra Modi, the Cabinet has given its nod for amendments in regulations for FDI in NBFCs, according to an official release. Since November last year, this is the third key relaxation in FDI rules. This year, in ...
IndoStar looks to grow its loan book to Rs.1200 cr
The Dollar Business Bureau Witnessing a combined annual growth rate (CAGR) of 49 percent in its assets, NBFC IndoStar Capital Finance, a wholesale credit institution, is eyeing to ramp up its lending for Small and Medium Enterprises (SMEs) this year and to increase its loan book five-fold to Rs.1,200 crore. Vimal Bhandari, Chief Executive and Managing Director, IndoStar said, "We are looking to ramp up our SME business in 2016 and create an AUM (assets under management) of Rs.1,200 crore by expanding geographically.” “We have closed our SME portfolio in the first year with an asset size of Rs.223 crore, through our four branches," he added. Bhandari mentioned that the major drivers of growth will be digital strategy and direct ...
Govt clears FDI proposals worth Rs. 5,240 crore
The Dollar Business Bureau The government on Friday cleared seven Foreign Direct Investment (FDI) proposals amounting to 5,240.35 crore, deferring four and rejecting five. Approval for the largest amount of FDI was given to India Advantage Fund S4 I, a SEBI registered Alternate Investment Fund, which sought permission to accept contributions up to 2,950 crore from offshore investors. The firm had sought the fund for investments in securities of the Indian companies in which FDI is permitted. It had also sought permission to distribute income realized on its investment to the offshore investors under the automatic route. The next higher FDI proposal approved was of Paragon Partners Growth Fund (Rs.985 crore), which sought acceptance for contributions amounting to 80% of ...
FDI upto 100% in White Label ATM Operations under automatic route.
Dated October 1st, 2015 | Press Note No.11 (2015 SERIES) | The Government of India has reviewed the extant FDI Policy and decided to allow Foreign Investment up to 100% in White Label ATM Operations, under the automatic route. Accordingly, a new sub-para 6.2.18.8.3 in the paragraph 6.2.18.8 of the Consolidated FDI Policy Circular is added in the following manner:- 6.2.18.8 Non-Banking Finance Companies (NBFC) 2. The above decision will take immediate effect. Sd/- (Atul Chaturvedi) Joint Secretary to the Government of India D/o IPP File No.: No.5/4/2013-FC-I Issued by: Ministry of Commerce & Industry Department of Industrial Policy & Promotion New Delhi
Banks disbursed less amount of loan to non-food sectors last fiscal
The Dollar Business Bureau Banks disbursed less amount of loan to non-food sectors during the last fiscal as compared to the credit extended to various sectors a year ago. Non-food bank credit grew by only 8.6% between March 2014 and March 2015. During previous year, the credit was increased by 14.3%, according to the latest data of the Reserve Bank of India (RBI). The data on disbursal of bank credit collected from select 47 scheduled commercial banks shows that non-food sector accounted for about 95 per cent of the total loan disbursal. However, the credit to agriculture and allied activities increased by 15% during 2014-15. The credit growth in this sector recorded 13.5% increase a year ago. Experts say that sluggish ...
