Government permits foreign investments through partly paid shares and warrants
Q. Government has taken which step to facilitate FDI in the country on 15th September 2015?- Published on 16 Sep 15a. It has permitted foreign investments through partly paid shares and warrants
b. It has permitted foreign investments through completely paid shares and warrants
c. It has permitted foreign investments through partly paid shares and debentures
d. It has permitted foreign investments through completely paid shares and debentures
ANSWER: It has permitted foreign investments through partly paid shares and warrants
Government has permitted foreign investments through partly paid shares and warrants in a move to facilitate FDI in the country. "The government has reviewed the provisions of the extant FDI policy...and it has been decided to allow partly paid shares and warrants as eligible capital instruments for the purposes of FDI policy," the Department of Industrial Policy and Promotion (DIPP) announced in a notification. Nature of these instruments is said to be in equity and facility sharing agreements between group companies through leasing/sub-leasing arrangements for the larger interest of business will not be treated as 'real estate business' within the provisions of the Consolidated FDI policy circular of 2015.
Government has relaxed FDI norms for sectors such as medical devices, defence and construction activities. During April-June quarter of 2015, FDI into the country grew by 31 percent to USD 9.50 billion.
