Tightening the norms, the government had last month done away with automatic approval of FDI in the existing pharmaceutical companies.
“FDI, up to 100 per cent, would be permitted for brownfield investment (i.e. investments in existing companies), in the pharmaceutical sector, under the Government approval route,” RBI said. For any merger or acquisition, the overseas investor will have to seek permission from the FIPB.
For the new investment, 100 per cent FDI will be allowed under the automatic route, under which investors only inform the RBI about the inflows.
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