RBI notifies changes in FDI norms
Mumbai: The Reserve Bank on Thursday notified changes in the FDI policy to allow FIIs to invest up to 23 percent in commodity exchanges without seeking its prior approval.
These changes were approved by the Department of Industrial policy and Promotion (DIPP) on April 10.
In order to streamline the procedures to boost foreign investment into the country, the DIPP comes out with a consolidated FDI circular every year. The next circular would be released on March 29, 2013.
In a communication to the banks, the RBI said that "banks may bring the contents of this circular to the notice of their constituents and customers concerned".
The DIPP had also withdrew the facility of giving equity in lieu of import of second hand equipment. This move was aimed at discouraging import of sub-standard machinery.
It had also made certain other procedural changes in the circular and incorporated announcements made with regard to 100 percent FDI in single brand and relaxation of guidelines for pharmaceutical sector.
As regard the commodity exchanges, at present, foreign investment, within a composite (FDI and FII)cap of 49 percent, under the government approval route is permitted in commodity exchanges.