Mr. Kush Verma

Mr. Kush Verma

Head of Indian and Singapore operations

Singapore-based Devonshire Capital's managing director Kush Verma said: "The move gives more flexibility to the foreign players to make foray into the sector."

The Devonshire Capital Managing Director, Mr Kush Verma, told Business Line that it was looking for a strategic local investor who could be drawn from among the employees, clients in TGL's portfolio or another investor to satisfy the seemingly conflicting guidelines.

The FIPB norms prescribe a ceiling on foreign investments in non-banking financial companies (NBFCs) up to a maximum of 74 per cent if foreign company brings in a sum of over $50 million. ``In this case, Devonshire Capital is bringing only about $2.5 million. Hence, it has been given permission to hold up to 51 per cent in TGL,'' Mr Verma said.

We will hold hands till the company is back on its feet and then sell off," say Kush Varma, managing Director of Devonshire.

To fulfil the FIPB norms, DCM had given an undertaking to SEBI and FIPB that it would disinvest through an offer-for-sale or by a fresh issue of capital to the public within six months from the date of closure of the offer, such shares to retain the listing status, said Mr Kush Verma, Managing Director, DCM.

Mr. Kush VermaHead of the Indian officekush@devonshirecapital.com