Indian bank RBI said that it has waived the requirement of No Objection Certificate (NoC) with regard to share transfer from residents to non-residents where the investee company is in the financial services domain.
It, however added that the ‘fit and proper or due diligence’ requirement as regards the non-resident investor as stipulated by the respective financial sector regulator will have to be complied with.
As per existing norms, the No Objection Certificates are obtained from the respective financial sector regulators or regulators of the investee company as well as transferor and transferee entities.
In another notification, RBI has allowed SEBI-registered foreign institutional investors to invest in the credit enhanced bonds up to a limit of 5 billion dollar. In a notification issued yesterday the Apex Bank said that these investments would be within the overall limit of 51 billion dollar earmarked for corporate debt. The present limits for investments by foreign institutional investors, qualified foreign investors and long term investors registered with SEBI in Government securities is 30 billion dollar.
The opportunity has been also extended to long term investors registered with SEBI’s Sovereign Wealth Funds, Multilateral Agencies, Pension, Insurance, Endowment Funds, Foreign Central Banks. This decision will increase capital inflow and possibly help the rupee gain against US dollar.
Business EditorNo NOC required for NRI investment in Finance firm – RBI
by Business Editor ( Author at Spirit India )
Posted on November 12th, 2013 at 11:21 am.
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