The Department of Industrial Policy & Promotion, vide Press Note 9 [2012 series] dated 3rd October, 2012, has revised a condition of minimum capitalization norm for the Foreign Direct investment in the NBFC Sector. Earlier only 100% foreign owned NBFC’s with a minimum capitalization of US$ 50 million could set up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital. However, with the revised guidelines, now the NBFC’s having foreign investment more than 75% and up to 100% with a minimum capitalization of US$ 50 million can also set up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital.