India said to plan higher FDI caps for telecom, defense firms

[CityFarmer]

Up to 49% in defense companies by FDI... Hmm... so hungry for foreign funding...

India said to plan higher FDI caps for telecom, defense firms

NEW DELHI – India plans to eliminate the cap on foreign-direct investment in telecommunications and raise the limit in defense to lure funds and boost the rupee, the Bloomberg news agency reported, citing information from two Finance Ministry officials.

Overseas investors would be able to own all of a telecoms company, up from 74 per cent currently, with the ceiling in defense rising to 49 per cent from 26 per cent, the officials said, asking not to be identified as the information isn’t public. The changes are expected to be announced late June or early July, they said.

http://www.todayonline.com/business/indi...ense-firms

[CityFarmer]

India is fighting hard to protect rupee. Releasing control on FDI, then restricting oversea M&A...

India’s capital outflow controls seen hurting overseas drive

MUMBAI – India’s new restrictions on capital outflows are likely to delay overseas acquisitions and investment plans by India Inc at a time when many companies are scouting markets abroad to beat the domestic economic slowdown, bankers and companies said.

In its latest move to curb dollar outflows and stem the rupee slide, the central bank on Wednesday cut the overseas investment limit for companies to 100 per cent of their net worth from 400 per cent, and further curbed gold imports.

Any foreign investment more than 100 per cent of a company’s value would require central bank approval. Large state companies were exempted from the rules, which came into effect immediately.

http://www.todayonline.com/business/indi...seas-drive