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RBI much worried by amended FDI Rules

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It is added by the source @ the www.propertykhazana.com that for controlling the approvals under the Foreign Exchange Management Act to the contended FDI norms, the RBI has raised affairs over the new guidance ensuing in widespread alterations in the possession motif of private banks. As per the guidance, the reason of estimation of indirect foreign investment in an Indian unit, a total of FDI share from NRIs, American and Global Depository Receipts, Foreign Currency Convertible Bonds and Convertible Preference Shares will be accepted. An officer said to www.propertykhazana.com that, “With these amendments, many private sector banks might find changes in their status from being occupant person to the NRI entities. RBI and Finance Ministry has lifted issues about these widespread amendments which will bunt many banks into various rule of governance in terms of policy approvals.”
While these changes are still to be known, the RBI has not informed about the FDI guidance correction. Officer of Department of Industrial Policy and Promotion (DIPP) said to www.propertykhazana.com that, “RBI still has to inform about the new guidance, but we wish that they will inform.” North Block was involved in the new FDI norms advising many domestic companies to revise their possession structure for beckoning FDI in the localities like retail through confidential. DIPP is the nodal point for FDI guidance and is checking the issues lifted by the finance ministry. As per to the new guidance, if an Indian firm with foreign equity of below 55% invests in one more firm then it will not be taken into account as FDI. As, DIPP further stated that the sectorial limit will relate even to next investments, many domestic companies appears to be repudiate this suggestion. For more updates on realty market browse www.propertykhazana.com.
Source: NBTVLIVE

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