Goldman Sachs seeks easing of approvals for NBFC activities

Goldman Sachs seeks easing of approvals for NBFC activities
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First Published: Sat, Sep 05 2009. 12 12 AM IST
Updated: Sat, Sep 05 2009. 12 12 AM IST
Mumbai: In a move targeted at relaxing regulatory approvals for activities undertaken by its Indian non-banking finance company (NBFC), Goldman Sachs has written to the government requesting a composite approval for its committed investments worth almost Rs200 crore.
Goldman Sachs has written to the Foreign Investment Promotion Board (FIPB) for an exemption of Press Note 1 of 2005 applicability, saying that it has to take approval from the board each time it wants to invest or indulge in NBFC activities in India due to applicability of the press note, according to people with knowledge in the matter.
It is pushing for a composite approval for any further investments, which will expedite investments into India, it has said, according to the people who declined to be identified.
Foreign direct investment of up to 100% is allowed in NBFC activities, including asset management business, but since Goldman Sachs had prior joint ventures with Kotak Securities Ltd and Kotak Mahindra Bank Ltd, it needs to get FIPB nod for each new tie-up or investments in the NBFC arena.
The board’s response would be crucial as that could possibly set a precedence for composite FIPB approvals to other companies looking at investing in NBFC activities in India.
cnbctv18@livemint.com
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First Published: Sat, Sep 05 2009. 12 12 AM IST