Now, all regulated financial services companies can take the automatic route. The move is likely to further expand the huge scope for funding in NBFCs and other financial services. "We are looking to raise capital from foreign investors and the new notification is a significant step in reducing confusion for foreign investment in a company like ours. A business is protected from arbitrariness after foreign investment has come in," said Tejasvi Mohanram, CEO, RupeePower , an online marketplace for finance products. Now that it is left to the regulatory agency and not the FIPB to stipulate the norms, minimum capital requirement will not be an onerous task for smaller companies looking to raise funds, according to fintech players.

Source: Economic Times October 24, 2016 03:56 UTC