India

India

Government allows 100 per cent foreign direct investment in Asset Reconstruction Companies under automatic route

06 May 2016

On 6 May 2016, India permitted 100 per cent foreign direct investment (FDI) in the capital of Assets Reconstructions Companies registered with the Reserve Bank of India, under the automatic route. Previously, FDI up to 49 per cent was allowed under the automatic route, and beyond that through the government approval route.