INDIA: 2013 budget to reform India foreign investment rules

Monday February 18 2013

Due to the 2013 budget reform on India foreign investment, it is being reported that Finance Minister P Chidambaram may announce extensive changes in the regulatory regime governing capital markets in the upcoming budget, including scrapping the cap on the amount foreign institutional investors can invest in corporate debt and putting in place a simpler regime for foreign investors in stocks and bonds.

This could be done, officials said, by extending the framework governing qualified foreign institutional investors to foreign institutional investors, non-residents and venture capital funds.

The ministry could also allow qualified foreign investors to invest over and above the foreign direct investment cap in sectors where there is no limit specified by Parliament.

This information will be updated as further details become available.