ANNOUNCEMENT 07 Sep 2012

In September 2012, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 07 Sep 2012 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 7 Septemeber 2012, the Reserve Bank of India (RBI) amended the Notification specifying the conditions for the transfer or issue of any foreign security. Under the new regime, Indian parties may now invest in Pakistani joint ventures or wholly owned subsidiaries. Prior to the change, Indian parties were banned from any investment in Pakistan.
 
The financial commitment for such investments (applicable for all countries) are capped at a maximum of 100% of the net worth of the Indian party, where net worth is defined as the paid up capital and free reserves of the company/companies incorporated in India making the investment.
 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A