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

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....rtment of Industrial Policy & 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....

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....cept in regard to a wholly-owned subsidiary of a foreign 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, ag....

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....eration in consultation with the Insurance Regulatory and Development Authority (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 FE....

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....owned subsidiary  in India. (c) A foreign bank may operate n India through only 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 i....