IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Sep 2012 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 7 Septemeber 2012, the Reserve Bank of India (RBI) amended the Notification specifying the conditions for the transfer or issue of any foreign security. Under the new regime, Indian parties may now invest in Pakistani joint ventures or wholly owned subsidiaries. Prior to the change, Indian parties were banned from any investment in Pakistan.
 
The financial commitment for such investments (applicable for all countries) are capped at a maximum of 100% of the net worth of the Indian party, where net worth is defined as the paid up capital and free reserves of the company/companies incorporated in India making the investment.
 

AFFECTED COUNTRIES

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