New Delhi, May 28 (KNN) With the view to improve the ease of doing business, government has said that the foreign investors will no longer have to seek the government's permission to transfer shares to another overseas player in sectors where FDI is allowed under automatic route.

"Government approval is not required for transfer of shares in the investee company from one non-resident to another non-resident in sectors which are under automatic route," the new Department of Industrial Policy and Promotion (DIPP) circular on FDI has said.


However, the government approval will be required for transfer of stake from one non-resident to another non-resident in sectors which are under government approval route, the circular added.


The circular also stated that companies won't have to require fresh prior approval of the government to bring in additional foreign investment into the same entity within an approved foreign equity percentage or into a wholly-owned subsidiary. (KNN Bureau)