NBFCs with foreign holding of more than 75 per cent and up to 100 per cent, with the minimum paid-up capital of $50 million, are now permitted to open any number of subsidiaries in India, as per the amendment to the Foreign Direct Investment (FDI) Scheme by Reserve Bank of India (RBI).
Earlier condition set up by RBI mandated 100% foreign owned NBFCs with a minimum capitalisation of $50 million for setting up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital.
However, as per the latest norms, the step down or operating subsidiaries could set up without any restriction on their number and without bringing in additional capital.