INDIA: RBI Hopes to Simplify India Foreign Investment Regime

Friday August 17 2012

It has been reported that the Reserve Bank of India has recommended that the finance ministry of India simplify the country’s India foreign investment regime. RBI hopes that the new finance team at the North Block considers their suggestion which they have been trying to pursue for the last couple of years.

According to the RBI, any India foreign investment in a company that is in excess of 10% of its shares should be considered as FDI and any foreign investment less than 10% should be considered as portfolio investment.

All Qualified Financial Investors (QFI) that want to invest through the portfolio route will have this proposal as a part of single window framework. This proposal will provide a simple structure for foreign investors to invest in Indian companies.

This information will be updated as more details become available