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FIPB clears 4 FDI proposals worth Rs 384 crore

10 Nov 2015 Evaluate

The government has approved four foreign direct investment (FDI) proposals amounting Rs 384 crore based on the recommendations of Foreign Investment Promotion Board (FIPB) including that of pharma firm Lupin. Further, FIPB in its meeting which was chaired by Economic Affairs Secretary Shaktikanta Das also cleared proposals of Eucare Pharmaceuticals and Hanon Systems from manufacturing sector.

Lupin had sought approval in respect of ESOPs granted by Lupin prior to 11 June 2015 to the non-resident employees of the company amounting to Rs 331.64 crore or its subsidiaries/joint ventures, as the case may be, which stock options have not been exercised by the employees nor shares otherwise allotted against them by Lupin up to the said date. Besides, BF Elbit Advanced Systems’ Rs 37.8 crore proposal for increasing foreign shareholding from 26 per cent to 49 per cent was also cleared.

However, five proposals including those of telecom sector firm Fire Fly Networks, defence sector firms RoltaMeprolight and Quantum Simulators, pharma sector’s  SeQuent Scientific and Singapore based  LLP Diarough Far East Holdings were deferred. Meanwhile, FIPB rejected four proposals which include Barefoot Resorts and Leisure lndia, Franklin Templeton Asset Management (lndia), Jeet Parikh and Reliance Globalcom. 

FDI is permitted in most of the sectors through automatic route, but the segments which are considered sensitive for economy need to be first cleared from FIPB. The FIPB can recommend foreign investment proposals of up to Rs 3,000 crore to the finance minister for approval and the proposals worth above that are referred to CCEA.


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