Govt permits foreign investments through partly paid shares

Q: Is this move by the government help in attracting Foreign Direct Investment?

Amreesh Murugan,

16th September 2015

Real estate News in Mumbai

real estate

fdi

foreign direct investment

dipp

fdi policy

department of industrial policy and promotion

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Replies (2)

@Jackie!!!!!
These would be subject to the condition that such arrangements are at arm's length price in co-ordination with applicable provisions of Income Tax Act 1961 and annual lease rent earned by the lessor company does not exceed 5% of its total income.

akhilesh pal,

16th September 2015

Comment

There are multiple sectors such as medical devices, defence and construction activities where govt. has relaxed FDI norms to boost Foreign Direst Investment.

Do you know that during April-June quarter of this financial year, foreign direct investment into the country grew by 31% to $9.50 billion.

Arushisha, Mumbai

16th September 2015

Yes, it is a good move by the govt. to make easy FDI Policy in the country. The government has reviewed the provisions of the present FDI policy and then it has been decided. The nature of these instruments are also of equity and the move will definitely help in attracting FDI in the country.

Himani,

16th September 2015

Comment

It is true and the Department of Industrial Policy and Promotion (DIPP) has clarified that the facility sharing agreements within 2 group companies will not be treated as real estate business provided the arrangements are at arm's length price.

Jackie,

16th September 2015