Aug. 6 – The Indian government has proposed to enact a new law on foreign direct investment in India, removing the distinctions between the categories of overseas funds that flow into the country.
The Foreign Direct Investment Act which will mainly concentrate on removing the distinction between various types of overseas fund flows like portfolio investment, venture capital, private equity and direct investment. The new law aims to provide a clear guideline on convertibility and avert discrimination against investments that take place through debt or quasi-debt instruments.
The law’s framers are also concentrating on bringing major changes to the Foreign Management Act. The FMA provides laws, rules and regulations for inbound and outbound foreign investment.