The Reserve Bank will now consider allowing Foreign Direct Investment (FDI) up to 49 per cent where the investor is a company with an established track record of running a Credit Information Bureau in a well regulated environment, provided no shareholder in the investor company holds more than 10 per cent voting rights in that company. Such a company should preferably be a listed company on a recognised stock exchange.

It may be recalled that a Press Release was issued on July 22, 2008 clarifying that while considering applications for grant of certificate of registration under the Credit Information Companies (Regulation) Act, 2005, it would ensure that no single investor, whether resident in India or outside India, holds more than 10 per cent of the equity capital of any credit information company. The ceiling of 10% was equally made applicable to investments made under the Foreign Direct Investment Scheme.

Ajit Prasad
Manager

Press Release : 2008-2009/735