ANNOUNCEMENT 30 Jun 2011In June 2011, the government of India announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
On 30 June 2011, the Reserve Bank of India permitted the issue of equity/preference shares under the Government route of the FDI scheme for certain categories of transactions.
The following transactions are eligible under this measure -
i) Import of capital goods/ machineries / equipments (including second-hand machineries) under certain conditions
ii) Pre-operative/pre-incorporation expenses (including payments of rent etc.) subject to compliance of necessary conditions.
A successful application requires approval by the Government subject to pricing guidelines and appropriate tax clearance.
As of 8 May 2012, import of second hand machineries under this measure has been disallowed.