ANNOUNCEMENT 23 Apr 2013

In April 2013, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 23 Apr 2013 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 23 April 2013, the Reserve Bank of India (RBI) issued a notification amending the restrictions on overseas investments in the oil sector (for exploration and drilling for oil and natural gas, etc.) by Navratna Public Sector Undertakings (PSUs), ONGC (Oil and Natural Gas Corporation) Videsh Ltd (OVL) and Oil India Ltd. (OIL). which are approved by the Government of India under the automatic route, that is without requiring any permission from the RBI
 
Previously, these companies were allowed to invest only in unincorporated entities in the oil sector under the automatic route, while all other investments required express permission. With this amendment these companies are allowed to invest also in incorporated Joint Ventures and Wholly Owned Subsidaries abroad under the automatic route.
 
The Navratna status is given to high performing public sector enterprises allowing them greater autonomy to compete in the global market. As a Navratna PSU, an enterprise is allowed to invest up to INR 1000 crore (appx. USD 160 million) or 15% of its net worth in a single project without seeking government approval (subject to the above condition).
 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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