Apr 25, 2018

Ministry of Finance vide press release has notified Minimum Capital Requirements for ‘Other Financial Services’ activities which are unregulated by any Financial Sector Regulator and FDI is allowed under Government Route.

·       For unregistered/exempted entities with fund based activities will have minimum capital requirement of USD20mn

·       For unregistered/exempted entities with non-fund based activities will have minimum capital requirement of USD2mn

It is also 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 are- 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, and Rural Credit

Non-fund based activities are- Investment advisory services, Financial Consultancy, Forex Broking, Money Changing Business, and Credit Rating Agencies’

[Release ID: 1529264]

URL: http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1529264

Related Updates

Alternate Text

Get updates on the go on RuleZbook Mobile App.