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Minimum Capital Requirements for 'Other Financial Services' activities which are unregulatedis allowed under Government Route

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Capital Market
Last Updated : Apr 17 2018 | 10:31 AM IST

Minimum Capital Requirements for 'Other Financial Services' activities which are unregulated by any Financial Sector Regulator and FDI is allowed under Government Route.

Minimum FDI capital Entity ActivityFund based activities* Unregistered / Exempted Unregulated US$ 20 mnNon-fund based* Unregistered / Exempted Unregulated US$ 2mn*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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First Published: Apr 17 2018 | 10:15 AM IST

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