Pak individuals can invest in India
Seeking to further simplify the foreign investment regime, the government on Saturday came out with revised consolidated guidelines on FDI that incorporate changes with regard to inflows in multi-brand retail and allow Pakistani nationals and companies to invest in India. A Pakistani citizen or an entity can now invest in the country under the government approval route.
Besides, it has included policy changes in sectors like single-brand retail, asset reconstruction companies (ARCs), power exchanges, civil aviation, broadcasting and non-banking financial companies.
The government made these changes in the sixth edition of the Consolidated FDI Policy Circular effective from April 5.
It has raised the FDI cap to 74 per cent in various services of the broadcasting sector. The foreign investment ceiling in ARCs has also been increased to 74 per cent from 49 per cent.
It has said that the total shareholding of an individual FII in an ARC shall not exceed 10 per cent of the total paid-up capital.
With regard to issue price of shares, a new paragraph has been added.
Under this, where non-residents, including NRIs, are making investments in an Indian firm in compliance with the provisions of the Companies Act, 1956, by way of subscription to its memorandum of association, “such investments may be made at face value subject to their eligibility to invest under the FDI scheme”.
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