FDI threshold set at $20 million for merchant banking, asset management

These activities also include money changing business and credit rating agencies

Foreign direct investors, keen on pumping money in merchant banking or asset management, have to bring in a minimum of $20 million.

The Centre has fixed a threshold of $20 million for foreign direct investments (FDIs) in unregistered fund-based activities such as merchant banking, underwriting, portfolio management services, stockbroking, and asset management.

The fund-based activities also include venture capital, custodian services, factoring, leasing and finance, housing finance, credit card business, micro credit, and rural credit. On the other hand, threshold for non-fund activities, such as investment advisory services, financial consultancy, forex broking, has been set at $2 million.