India raises FDI cap in asset reconstruction cos to 74%

India raised the cap on foreign direct investment in asset reconstruction companies (ARC) to 74 percent from 49 percent, the Reserve Bank of India (RBI) said on Monday, another measure to attract capital inflows to support a sagging rupee.

The foreign investment limit of 74 percent in the company will include both foreign direct investment and foreign institutional investment with a single portfolio investor not allowed to exceed 10 percent of paid-up capital in the ARC, the RBI said.

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