In a bid to further simplify the foreign investment regime, the government on April 06 came out with the revised consolidated guidelines on FDI. The changes have been made in the sixth edition of the Consolidated FDI Policy Circular, a ready reckoner on foreign investment-related regulations that is effective from April 5.
The guidelines incorporated changes with regard to inflows in multi brand retail and allowing Pakistan nationals and companies to invest in the country. Now, a Pakistani citizen or an entity can invest in the country under the government approval route. The revised list of FDI guidelines also incorporates policy changes in sectors like single brand retail, asset reconstruction companies, power exchanges, civil aviation, broadcasting and non-banking financial companies (NBFCs).
With regard to issue price of shares, where a non-residents including NRIs are making investments in an Indian firm in compliance with the provisions of the Companies Act, 1956, by way of subscription to its Memorandum of Association, such investments may be made at face value subject to their eligibility to invest under the FDI scheme.
The policy has also listed as many as eight mandatory conditions and one optional clause with regard to conversion of a company with FDI into a Limited Liability Partnerships (LLPs) firm.
