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

....riat 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 investment in Banking Sector. The Gover....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve 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 can be raised to 49 per cent by the bank co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt 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 RBI and other institution such as SEBI,D/O Company Af....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-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 establish a subsidiary through acquisition of shares of an e....