MUMBAI India has raised the ceiling for foreign direct investment (FDI) in asset reconstruction companies (ARCs) to 74 percent from 49 percent, according to a government statement late on Friday.
The increase in the ceiling is subject to the condition that no sponsor can hold more than 50 percent of shareholding in an ARC through the FDI or foreign institutional investment route, according to the statement.
Foreign investment in ARCs would also need to comply with India's FDI policy in terms of entry route and sectoral caps.
(Reporting by Aditi Shah; Editing by G.Ram Mohan)
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