Paragraph 5.2.26 Other Financial Services
- Text as on
- As issued 15 October 2020; Press Notes since are not applied
5.2.26 OTHER FINANCIAL SERVICES
Sector/Activity % of Equity/ Entry Route FDI Cap Automatic
5.2.26.1 100%
Financial Services activities regulated by financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India.
5.2.26.2 OTHER CONDITIONS i. Foreign investment in 'Other Financial Services' activities shall be subject to
conditionalities, including minimum capitalization norms, as specified by the concerned Regulator/Government Agency. ii. ‘Other Financial Services' activities need to be regulated by one of the Financial Sector Regulators. In all such financial services activity which are not regulated by any Financial Sector Regulator or where only part of the financial services activity is regulated or where there is doubt regarding the regulatory oversight, foreign investment up to 100% will be allowed under Government approval route subject to conditions including minimum capitalization as may be decided by the Government.
iiii. Any activity which is specifically regulated by an Act, the foreign investment limits will be restricted to those levels/limit that may be specified in that Act, if so mentioned.
iv. Downstream investments by any of these entities engaged in "Other Financial Services" will be subject to the extant sectoral regulations and provisions of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, as amended from time to time.
OTHERS % of Equity/ Entry Route