The Reserve Bank of India (RBI) on Thursday issued revised guidelines allowing higher foreign direct investment (FDI) limits in credit information companies (CIC) which have an established track record of running a credit information bureau.
The central bank said that up to 49% FDI would be allowed if ownership of the investor company is not well diversified.
It stated that foreign direct investment of up to 100% would be allowed if ownership of investor company is well diversified. In case, the ownership is not well diversified, at least 50% of the directors of the investee CIC in India should be Indian nationals or non-resident Indians/persons of Indian origin subject to the condition that one third of the directors are Indian nationals resident in India.
The RBI further added that investment of foreign institutional investors (FII)/foreign portfolio investors (FPI) should directly or indirectly hold below 10% equity.