Govt relaxes FDI norms for PIOs, OCI, NRIs
Updated: May 22, 2015 12:47:25pm
New Delhi, May 22 (KNN) With the view to attract overseas funds, the Union Cabinet has approved a relaxation of policy on investment proposals from Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs), and Non-Resident Indians (NRIs).
The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved amendments, including changes in definition of NRIs, to be incorporated in the FDI policy.
“The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the Foreign Direct Investment (FDI) policy with the government's stated policy to provide PIOs and OCIs parity with NRIs in (the) economic, financial and educational fields,” according to an official statement.
The government also approved an amendment to Schedule 4 of the Foreign Exchange Management Act (Fema) Regulations, that NRI investments would be “deemed to be domestic investment made by residents”.
“The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance, leading to economic growth of the country…This will enable investments by NRIs, OCI cardholders and PIO cardholders under Schedule 4 on a non-repatriation basis, across sectors, without being subjected to any of the conditions associated to foreign investment,” the Cabinet said.
The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country. (KNN Bureau)
The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved amendments, including changes in definition of NRIs, to be incorporated in the FDI policy.
“The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the Foreign Direct Investment (FDI) policy with the government's stated policy to provide PIOs and OCIs parity with NRIs in (the) economic, financial and educational fields,” according to an official statement.
The government also approved an amendment to Schedule 4 of the Foreign Exchange Management Act (Fema) Regulations, that NRI investments would be “deemed to be domestic investment made by residents”.
“The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance, leading to economic growth of the country…This will enable investments by NRIs, OCI cardholders and PIO cardholders under Schedule 4 on a non-repatriation basis, across sectors, without being subjected to any of the conditions associated to foreign investment,” the Cabinet said.
The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country. (KNN Bureau)
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