Revision of existing sectoral guidelines and equity cap on Foreign Direct Investment FDI). IncIuding investment by Non Resident Indians NRIs) and Overseas Corporate Bodies (OCBs)/ Foreign Institutional Investors (Flls) in the Banking Sector

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Promotion Secretariat for Industrial Assistance PRESS NOTE NO. 2 (2004 SERIES) Subject : Revision of existing sectoral guidelines and equity cap on Foreign Direct Investment FDI). IncIuding investment by Non Resident Indians NRIs) and Overseas Corporate Bodies (OCBs)/ Foreign Institutional Investors (Flls) in the Banking Sector With a view to further Iiberalising foreign investme .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... reign bank. (c) The stipulations as above will be applicable to all investments 'in existing private sector banks also. (d) The permissible limits under portfolio investment schemes through stock exchangers for Fll and NRIs w be as follows: (i) In the case of His, as hitherto, individual Flls holding is restricted to 10 per cent, aggregate limit for all Flls cannot exceed 24 per cent, wnich .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... thority (IRDA) in order to ensure r the 26 per cent limit of foreign shareholding applicable for the insurance sector is not being breached. (f) Transfer of shares under FDI from residents to non-residents will continue to require approval of Foreign investment Promotion Board (FIPB) under Foreign Exchange Management Act FEMA). (g) The policies and procedures prescribed from time to time by R .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... one of the three channels viz., (I) branch/es (ii) a wholly-owned subsidiary; and (iii) a subsidiary with aggregate foreign Investment up to a maximum of 74 per cent in a private bank. (d) A foreign bank will be permitted to establish a holly-owned subsidiary either through conversion of existing branchhes into asubsidiary or through a fresh banking lincence. A foreign bank will be permitted to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... investor. Any change in the ceiling can be brought about only after final policy decisions and appropriate parliamentary approvals. (UMESH KUMAR) Joint Secretary to the Government of India No 5/6/2000-FC dated 5 th March,2004 Copy forwarded to Press Information Officer, Press information Bureau For giving wide publicity to the above Press Note, - Circular - Tra .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X