“No NBFC shall open subsidiaries/joint ventures/ representative office abroad or shall make investment in any foreign entities without obtaining prior approval in writing from the Reserve Bank of India,” RBI said, adding investments will be permitted only in those entities having their core activity regulated by a financial sector regulator in the host jurisdiction or country.
Besides, aggregate overseas investment by non-banking financial companies (NBFCs) should not exceed 100 per cent of their net owned fund (NOF).
Published 15 June 2011, 16:00 IST