Further liberalisation of foreign investment on cards

The new Finance Minister has said that the Ministry is working on a policy document for further liberalisation of the foreign investment policy. The key amendments we can expect out of this policy change are likely to be:

1. Composite cap for all types of investments including FDI, FII, NRI and others.

2. Opening up most sectors like railways, ecommerce etc (other than strategic sectors) to foreign investment upto 49% under the automatic route. Defence could benefit too.

3. Categorisation of sectors based on National Industrial Code to ensure clarity.

http://economictimes.indiatimes.com/news/economy/policy/finance-ministry-to-introduce-a-framework-that-will-allow-49-investment-in-most-sectors/articleshow/35690641.cms

 

 

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All out for investments – eliminating age old and undue restrictions on options in shareholder agreements

It took India a trade deficit crisis to finally wake up to the age old and undue restrictions on put and call options in shareholders agreements or investment agreements.

http://www.livemint.com/Politics/xNFhxDuFymCtTFPLrUvuXI/Eye-on-foreign-investment-Sibal-approves-options-in-MA-PE.html