The Hindu Business Line : Equifax arm, GUS seek nod for 49% in 2 credit info cos

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Equifax arm, GUS seek nod for 49% in 2 credit info cos

Moumita Bakshi Chatterjee

New Delhi, April 6 Within a month of notification of new guidelines for foreign investment in credit information companies, the Government has received two proposals – by EFX Holdings Ltd and GUS Holdings BV - for 49 per cent foreign direct investment in separate credit information companies (CICs). The US-based Equifax’s subsidiary, EFX Holdings, proposes to enter into a joint venture with Tata Capital Ltd and CRISIL, for credit information business in India. EFX is keen on picking up 49 per cent stake in the joint venture - Scout Data Management Services where CRISIL and Tata Capital would hold 26 per cent and 25 per cent respectively.

EFX has sought the Government nod for making an initial investment of Rs 7.95 crore, representing 49 per cent of the paid-up capital of Scout Data Management Services, and a total investment in the first three years of Rs 39.70 crore of the paid-up capital of the company. The joint venture would provide credit information services such as collecting, processing and collating information on trade, credit and financial standing of the borrowers of credit institutions which are members of the CIC and provide credit information and credit scoring to its specified users.

In another proposal, GUS Holdings, investment holding and management company incorporated in the Netherlands, is eyeing 49 per cent stake in Experian India and has already signed an MoU with four Indian banks – ICICI Bank, Axis Bank, HDFC Bank and Centurion Bank of Punjab – which will hold the balance 51 per cent.

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Crisil plans credit info co with Tata Capital, Equifax

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