ANNOUNCEMENT 10 Apr 2012

The Consolidated FDI policy statement for 2012 included the following announcements:

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 10 Jan 2012 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

  • FDI in Commodity Exchange: Investments by FIIs in commodity exchanges will no longer require Government approval.
  • The Circular clarifies that FDI in the activity of "leasing and finance" by Non-Banking Finance Companies covers only financial leases and not operational leases. 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 10 Jan 2012 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

At present, conversion to equity is permitted for import of capital goods/ machinery/ equipment (including second-hand machinery). It has been represented before Government that the Indian capital goods sector, including the machine tools industry, construction machinery and textile machinery, has been suffering because of import of cheaper second hand machinery, which is often sub-standard. With a view to incentivising machinery embodying state-of-the-art technology, compliant with international standards, in terms of being green, clean and energy efficient, second-hand machinery has now been excluded from the purview of this provision.
 
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