RBI could raise FDI limit in credit information cos to 74%: Report

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RBI could raise FDI limit in credit information cos to 74%
The RBI may allow up to 74 per cent foreign direct investment in credit information companies, said a PTI report."The Reserve Bank may consider allowing higher FDI limits to entities which have an established track record of running a credit information bureau in a well-regulated environment," RBI said in a notification.

The limit can be allowed to be increased up to 49 per cent if their ownership is not well-diversified, which means one or more shareholders each hold more than 10 per cent voting rights in the company. And the limit can be raised to 74 per cent if the ownership is well-diversified, RBI said.

If the ownership is not well-diversified, at least half of directors of the investee credit information company (CIC) in India should be Indian nationals or non-resident Indians or persons of Indian origin, subject to the condition that one-third of the directors are Indian nationals resident in India, it added.

"The investor company should preferably be a listed company on a recognised stock exchange," RBI said.

In case investor in a CIC is a wholly-owned subsidiary (directly or indirectly) of an investment holding company, these conditions will be applied to the operating group company that is engaged in credit information business and has undertaken to provide technical know-how to the CIC in India, the regulator said.

Dion Global Solutions Ltd.

Read more about: rbi, fdi, credit information companies, cic
Story first published: Monday, December 2, 2013, 9:10 [IST]
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