Govt revises consolidated guidelines for FDI

• Seeking to simplify the foreign investment regime, government on came out with the revised guidelines on FDI.

• The guidelines included policy changes in sectors like single brand retail, asset reconstruction companies (ARCs), power exchanges, civil aviation, broadcasting and non-banking financial companies (NBFCs).

• The government made these changes 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 government also allowed foreign airlines to pick 49 per cent stake in the cash-strapped domestic carriers.

• Similarly, it has raised FDI cap to 74 per cent in various services of the broadcasting sector. The foreign investment ceiling in ARCs has also been increased to 74 per cent from 49 per cent, a move aimed at bringing more foreign expertise in the segment.

• It has said that the total shareholding of an individual FII in an ARC shall not exceed 10 per cent of the total paid-up capital.