ANNOUNCEMENT 14 Sep 2012In September 2012, the government of India announced changed rules for foreign investors.
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Official Public Release
On 14 September 2012, the Cabinet Committee on Economic Affairs approved the proposal of the Department of Industrial Policy & Promotion for permitting foreign investment up to 49% of the paid up capital, in Power Trading Exchanges.
Within 49%, a sub-limit has been fixed at 26% for Foreign Direct Investment (FDI) and 23% for Foreign Institutional Investors (FIIs). Further, FII investments will be approved automatically while FDI will require prior government approval. Also, investments by FIIs are restricted only to the secondary market and excludes any non-resident person/entity holding more than 5% equity in these companies.