NEW DELHI: The department of industrial policy & promotion’s move to have composite caps for all foreign investment has run into rough weather, with many departments picking holes in the proposal.
DIPP has moved a cabinet note proposing introduction of composite foreign investment caps encompassing foreign portfolio investment, NRI investment, depository receipts, foreign currency convertible bonds and fully and mandatorily convertible preference shares or debentures.
As per the draft note, mooted in July, in sectors with caps, government approval will be required where a foreign owned or controlled company is being set up, or control or ownership of Indian firm is being passed into foreign hands.
