Hope you are enjoying our corporate law updates and share with your precious circle. Today (10.01.2018) union cabinet approved “100% FDI IN SINGLE BRAND RETAIL TRADING”. Some key points regarding this are:-
- 100% FDI under automatic route for Single Brand Retail Trading.
- Clarification that real-estate brooking service does not amount to real estate business and is therefore, eligible for 100% FDI under automatic route.
- Foreign airlines allowed to invest up to 49% under approval route in Air India.
- FIIs (Foreign Institutional Investors) /FPIs (Foreign Portfolio Investors) allowed to invest in Power Exchanges through primary market as well in addition to the secondary market.
- Issue of shares against non-cash considerations like pre-incorporation expenses, import of machinery etc. shall be permitted under automatic route in case of sectors under automatic route.
- Foreign investment in the Core Investing Companies shall be allowed upto 100% under automatic route if they are regulated by any Financial Sector Regulator and if they are not regulated by any regulator or where only part is regulated or where there is doubt regarding the regulatory oversight, foreign investment up to 100% will be allowed under Government approval route.