The government today relaxed norms for the setting up of subsidiaries by foreign owned Non- banking financial companies (NBFCs). NBFCs with foreign holding of more than 75 per cent and up to 100 per cent, with the minimum paid-up capital of USD 50 million, are now allowed to open any number of subsidiaries. As per the existing norms, only 100 per cent foreign- owned NBFCs, with a minimum capitalisation of 50 million US dollars are allowed to establish subsidiaries for specific NBFC activities.

AIR correspondent reports, a notification of the Department of Industrial Policy & Promotion says with a minimum capitalisation of 50 million US dollar (foreign owned NBFCs) can set up step-down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital.