This is in continuance of our series on
Consolidated
FDI Policy of India 2012 by DIPP. In this
article
Perry4Law
and Perry4Law
Techno Legal Base (PTLB) would discuss the FDI
in credit
information companies (CIC) sector of India under the consolidated
FDI policy of India 2012.
FDI in Credit Information Companies
(CIC) is allowed
up to 49% (FDI and FII) through government approval route.
The other conditions in this regard are:
(1) Foreign investment in Credit
Information
Companies is subject to the Credit Information Companies (Regulation)
Act, 2005.
(2) Foreign investment is permitted
under the
Government route, subject to regulatory clearance from RBI.
(3) Investment by a registered FII
under the
Portfolio Investment Scheme would be permitted up to 24% only in the
CICs listed at the Stock Exchanges, within the overall limit of 49%
for foreign investment.
(4) Such FII investment would be permitted subject to the conditions that:
(a) No single entity should directly or indirectly hold more than 10% equity.
(b) Any acquisition in excess of 1% will have to be reported to RBI as a mandatory requirement; and
(c) FIIs investing in CICs shall not
seek a
representation on the Board of Directors based upon their
shareholding.
