ANNOUNCEMENT 21 Feb 2014

In February 2014, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 21 Feb 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 21 February 2014, the Indian aviation authority, the Directorate General of Civil Aviation, amended the rules for foreign control over management of domestic airlines.
 
The amdended rules state that domestic airlines shall not enter intoagreements with a foreign investor that give this partnerthe right to control the management of the domestic airline. The prior rules made no explicit reference to the whereabouts of the effective control over the domestic carrier. Instead, the earlier rules required that the Chairman and two-thrids of the domestic airline's board members are Indian citizens; thus implicitly leaving effective control and substantial ownership to domestic citizens.
 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A