FDI IN COMMODITY EXCHANGES, REFINING & INDUSTRIAL PARKS ALLOWED
The Government liberalized the
Foreign Direct Investment (FDI) cap
across various sectors.
Commodity Exchanges: FDI up to 26 percent and the FII up to 23 percent have been allowed in commodity exchanges subject to the condition that no single investor would hold more than five per cent.
Petroleum refining by PSUs : hiking the equity cap to 49% (from the existing 26 per cent) with prior approval of the FIPB.
Industrial Park : The Cabinet has also decided to exempt foreign investment in industrial parks from the provisions of Press Note 2 (2005) that stipulates conditions such as minimum capitalization and a three year lock in.
Construction development : investment by registered FIIs under the portfolio investment scheme would be distinct from the FDI and outside the provisions of Press Note 2 (2005).
Credit information services : Added in permitted FDI as NBFCs. Besides the minimum capitalization of $10 million for the wholly owned subsidiaries and $5 million for joint ventures with Indian partners, the Press Note 2 specifies that original investment cannot be repatriated before a period of three years from completion of minimum capitalization. It also stipulates other conditions such as minimum area to be developed.
Commodity Exchanges: FDI up to 26 percent and the FII up to 23 percent have been allowed in commodity exchanges subject to the condition that no single investor would hold more than five per cent.
Petroleum refining by PSUs : hiking the equity cap to 49% (from the existing 26 per cent) with prior approval of the FIPB.
Industrial Park : The Cabinet has also decided to exempt foreign investment in industrial parks from the provisions of Press Note 2 (2005) that stipulates conditions such as minimum capitalization and a three year lock in.
Construction development : investment by registered FIIs under the portfolio investment scheme would be distinct from the FDI and outside the provisions of Press Note 2 (2005).
Credit information services : Added in permitted FDI as NBFCs. Besides the minimum capitalization of $10 million for the wholly owned subsidiaries and $5 million for joint ventures with Indian partners, the Press Note 2 specifies that original investment cannot be repatriated before a period of three years from completion of minimum capitalization. It also stipulates other conditions such as minimum area to be developed.
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