DIPP has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent.
Buyers lapped up shares of Bharat Electronics , BEML and Astra Microwave Products on Wednesday on hike in foreign direct investment limit in defence space. These stocks gained as much as 5-8 percent intraday. The Department of Industrial Policy and Promotion (DIPP) on Tuesday released a press note on defence FDI , saying foreign investment will be allowed through the FIPB route and foreign institutional investors (FIIs) will also be allowed to invest. It has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent. However, the caveat is that company seeking permission of the government for FDI up to 49 percent should be an Indian company owned and controlled by Indians.
According to the DIPP press note, foreign direct investment proposals above 49 percent will have to ask for Cabinet Committee on Security's permission. Further, the FDI limit of 49 percent is composite and includes all kinds of foreign investments - FDI, FIIs, FPIs, NRIs, foreign venture capital investors (FVCIs) and qualified foreign investors (QFIs). At 12:44 hours IST, the scrip of BEML was locked at 5 percent upper circuit at Rs 540.55 on the BSE. There were pending buy orders of 23,268 shares, with no sellers available. Bharat Electronics rose 7.26 percent to Rs 1,890 while Astra Microwave Products climbed 2.84 percent to Rs 128.75.
Buyers lapped up shares of Bharat Electronics , BEML and Astra Microwave Products on Wednesday on hike in foreign direct investment limit in defence space. These stocks gained as much as 5-8 percent intraday. The Department of Industrial Policy and Promotion (DIPP) on Tuesday released a press note on defence FDI , saying foreign investment will be allowed through the FIPB route and foreign institutional investors (FIIs) will also be allowed to invest. It has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent. However, the caveat is that company seeking permission of the government for FDI up to 49 percent should be an Indian company owned and controlled by Indians.
According to the DIPP press note, foreign direct investment proposals above 49 percent will have to ask for Cabinet Committee on Security's permission. Further, the FDI limit of 49 percent is composite and includes all kinds of foreign investments - FDI, FIIs, FPIs, NRIs, foreign venture capital investors (FVCIs) and qualified foreign investors (QFIs). At 12:44 hours IST, the scrip of BEML was locked at 5 percent upper circuit at Rs 540.55 on the BSE. There were pending buy orders of 23,268 shares, with no sellers available. Bharat Electronics rose 7.26 percent to Rs 1,890 while Astra Microwave Products climbed 2.84 percent to Rs 128.75.
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