The FDI proposals were approved by Finance Minister P Chidambaram on the basis of recommendations made by Foreign Investment promotion Board (FIPB). Most relate to sectors like stock broking, banking, chemicals, automobiles, information technology and publishing, the finance ministry said here.

As recommended by FIPB, the government allowed Morgan Stanley, Mauritius to invest up to $465 million (about Rs 1,894 crore) in shares and convertible preference shares to be issued by Morgan Stanley, India, to undertake stock broking, merchant banking and other NBFC activities. The Centre also allowed Daimler Chrysler India to expand the scope of its current operations to manufacture chassis of trucks and buses. The proposal does not envisage any inflow of foreign fund.

Rakindo Developers—based in Chennai—plans to set up a joint venture for making downstream investment in construction development projects with a foreign investment of Rs 407 crore. Luxocitta of  Holland, maker of sunglasses, received the clearance to set up a wholly-owned subsidiary to undertake wholesale cash and carry trading in the eyewear industry.

Mr Chidambaram approved the proposal of Netherlands-based EMAP Publishing to pick up 40.1 pc equity for Rs 4.81 crore in Next Gen Publishing, which publishes a car magazine.