A mere consolidated FDI policy seemed to have disappointed many of us. Nonetheless as announced by the Finance Minister P Chidambaram in this year’s budget, RBI is soon coming out with a discussion paper on redefining foreign institutional investor (FII) and foreign direct investment (FDI). While FM had stated that “where a investor has a stake of 10% or less in a company, it will be treated as FII and where an investor has a stake of more than 10%, it will be treated as FDI” the exact detailed guidelines and its application may come out soon along with the discussion paper from RBI.
[source: www.financialexpress.com]