IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 22 Aug 2012 | Removal date: open ended
Still in force

FDI: Financial incentive

On 22 August 2012, the Reserve Bank of India amended an earlier notification on the transfer or issue of a security by a person resident outside India. The amendment allows Pakistani citizens and entities to invest in shares and convertible debentures of Indian companies.
 
Previously, all citizens (except citizens from Bangladesh, Sri Lanka or Pakistan) and all entities (except entities from Bangladesh or Pakistan) were allowed to purchase shares or covertible debentures of an Indian company under the Foreign Direct Investment Scheme, subject to specified conditions.
 
Thus, the amendment allows Pakistani citizens and entities to make such investments provided that they get prior approval of the Foreign Investment Promotion Board of the Government of India, fulfill the specified conditions and provided that such investment is and shall not be engaged in sectors/activities pertaining to defence, space and atomic energy and other sectors/activities prohibited for foreign investment.

AFFECTED COUNTRIES

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