Govt makes M&As investor-friendly

Govt makes M&As investor-friendly

Govt makes M&As investor-friendly

 After easing foreign direct investment (FDI) norms, the government has made merger and acquisition rules investor-friendly.

According to the consolidated FDI circular, an approval by the Foreign Investment Promotion Board (FIPB) is not required for mergers and acquisitions (M&As) taking place in sectors under the FDI automatic route.

The circular also said that government permission would not be required for issuing ESOPs (Employees Stock Option Plan) in sectors under the automatic route.

Earlier this month, the government had enhanced the powers of FIPB to take decisions on foreign investments worth up to Rs 3,000 crore. The limit earlier was only Rs 1,200 crore. The decision was taken to help in speedier clearance of FDI proposals, one of the key concerns of investors.

 Additionally, the Department of Industrial Policy and Promotion (DIPP) has also started an eBiz portal through which an investor can take as many as 14 clearances using a single window.

“The steps have been taken to enhance ease of doing business in India,” a senior government official said.

Another official said these moves would help in clearing many stalled proposals while it would also increase the inflow of foreign investment.

Currently India ranks 142 in the World Bank’s list for Ease of Doing Business. Prime Minister Narendra Modi has time and again said that he aims to bring India in the list of 50 top destinations for doing business.

Most of the sectors are at present under the automatic route, meaning only intimation is required to be given to the RBI and approval of FIPB/CCEA is not required. No limit for foreign investment has been prescribed for the automatic route.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)