The Hindu Business Line : RBI directive on investment in credit info co

Mumbai, July 23 Single investors, irrespective of whether they are residents in India or outside, cannot hold more than 10 per cent of the equity capital in a credit information company, clarified the RBI.

The RBI explained that this was in line with the central bank’s policy of ensuring well diversified ownership of banks and other entities in the financial sector as well as entities in financial sector infrastructure.

It is necessary and expedient in the public interest that investment directly or indirectly by any person, whether resident or otherwise, in any credit information company shall not exceed ten per cent of the equity capital of the investee company, said the RBI directive.

The central bank has also said the ceiling of 10 per cent will be equally applicable to investments made under the Foreign Direct Investment Scheme.

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