Ministry of Finance
Minimum Capital Requirements for ‘Other Financial Services’ activities which are unregulated by any Financial Sector Regulator and FDI is allowed under Government Route.
Posted On:
16 APR 2018 7:14PM by PIB Delhi
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Minimum FDI capital
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Entity
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Activity
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Fund based activities*
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Unregistered / Exempted
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Unregulated
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US$ 20 mn
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Non-fund based*
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Unregistered / Exempted
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Unregulated
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US$ 2mn
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* ExplanatoryNote: It is clarified that fund and non-fund based activities shall include, but not limited to,the following activities to the extent that they are- (i)not regulated by any financial sector regulator - this shall include scenarios where the entity is not registered with the concerned sector regulator and/or the entity/activity is exempted under the concerned sector regulations; or (ii)where only part of the financial services activity is regulated; or (iii) where there is a doubt regarding the regulatory oversight:
Fund based activities:Merchant Banking, Under Writing, Portfolio Management Services, Stock Broking, Asset Management, Venture Capital, Custodian Services, Factoring, Leasing & Finance, Housing Finance, Credit Card Business, Micro Credit, Rural Credit
Non-fund based activities: Investment advisory services, Financial Consultancy, Forex Broking, Money Changing Business, Credit Rating Agencies’
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