Govt revises consolidated guidelines on FDI
06 Apr 2013
The government today released the revised consolidated guidelines on foreign direct investment (FDI), in a bid to simply the investment climate for overseas investors.
The guidelines, released today, incorporates changes with respect to FDI in multi brand retail and allowing Pakistan nationals and companies to invest in the country.
The revised list of FDI guidelines also incorporates policy changes in sectors like single brand retail, asset reconstruction companies, power exchanges, civil aviation, broadcasting and non-banking financial companies.
The sixth edition of the Consolidated FDI Policy Circular also incorporates FDI policy change allowing foreign airlines to invest up to 49 per cent in an Indian carrier, both existing and new
Similarly, FDI has also been allowed, with a cap of 74 per cent in various broadcasting services.
Foreign investment ceiling in asset reconstruction companies (ARCs) has also been increased to 74 per cent from 49 per cent, a move aimed at bringing more foreign expertise in the segment. However, total shareholding of an individual FII in an ARC should not exceed 10 per cent of the total paid-up capital.
Now, a Pakistani citizen or an entity can invest in the country under the government approval route.
With regard to issue price of shares, a new paragraph has been added.
Also, non-residents, including Indians (NRIs) investing in an Indian company in compliance with the provisions of the Companies Act, 1956, by way of subscription to its memorandum of association, may make "such investments at face value subject to their eligibility to invest under the FDI scheme".
