Financial Daily from THE HINDU group of publications
Saturday, Jan 11, 2003
Financial Daily from THE HINDU group of publications Saturday, Jan 11, 2003 |
|
|
|
|
|
Home Page
-
Financial Policy Government - Policy Corporate - Overseas Investments Markets - Mutual Funds Industry & Economy - Investments MFs can invest $1 b in listed foreign cos — Window open also for individuals, corporates Our Bureau
NEW DELHI, Jan. 10 AS part of a slew of big-bang measures aimed at further flexibility in capital account transactions and integrating the Indian financial market with the global capital markets, the Finance Minister, Mr Jaswant Singh, today announced that individual investors and listed Indian companies would soon be permitted to invest in listed companies in overseas stock exchanges. Besides increasing the overall cap for investment abroad by mutual funds to $1 billion, the Government has also decided to permit mutual funds to invest abroad in companies that are listed in overseas stock exchanges, Mr Singh said. The caveat in the case of all the three categories - individuals, listed Indian companies and mutual funds - is that the companies in which they are investing should each have a shareholding of at least 10 per cent in a listed Indian company on January 1 of the year of investment. Further, in the case of investments abroad by listed Indian companies, the investments should not exceed 25 per cent of Indian company's net worth as on the date of the last audited balance sheet. Some investment limits are also being fixed for individuals. Addressing the non-resident Indian community here on the second day of the maiden Pravasi Bharatiya Divas gathering, the Finance Minister also said that Indian companies would now be given a general permission to retain American depository receipts (ADRs)/global depository receipts (GDRs) proceeds abroad for further forex requirements. Corporates that have set up their branches and offices abroad would be permitted to acquire immovable property overseas for their business and staff residential purposes. On transfer of assets in India, remittance of proceeds up to $ 1 million is being permitted in the case of individuals. The existing limit of $20,000 for remittance under the Employees Stock Option Programme (ESOP) scheme is also being removed. It is intended to discontinue limits on trade-related loans and advances by Export Earners Foreign Currency (EEFC) account holders, though the transactions would continue to be reported to the RBI. Mr Singh expressed optimism over India becoming a major "manufacturing centre" in the next 10 years. Stating that the progress in development of aviation infrastructure has been "unsatisfactory", he promised that improvements could be seen in ports and airports infrastructure within the next 12-18 months.
Send this article to Friends by
E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|