New Delhi, Sept. 23 (PTI): The Foreign Investment Promotion Board (FIPB) has turned down a proposal that a subsidiary of the US-based financial services firm Bear Stearns Companies Inc be given two more years to increase the paid-up capital of Ford Automotive Finance Co India, which it wants to acquire.

The subsidiary, Bear Strategic Investment Corp, plans to buy a 100 per cent stake in Ford Automotive Finance. The stake is to be purchased from Ford Credit International, which had proposed to the FIPB that Bear Stearns be taken as a new entrant of 100 per cent equity in the non-banking financial company.

Ford Credit had also sought FIPB approval that Bear Stearns be given two more years to capitalise the company to the extent of $50 million by infusing an additional capital of $28 million.