FEMA provision has been deleted, one that allowed the central bank to limit or regulate cross-border transactions or transfer of immovable property to foreigners, a report says.
In an attempt to make Foreign Investment Promotion Board (FIPB) more convenient and enhance the ease of doing business, RBI’s nod would not be required for gaining approval on FDI in India by investors.
The Foreign Exchange Management Act (FEMA) provision has been deleted, one that allowed the central bank to limit or regulate cross-border transactions or transfer of immovable property to foreigners, a report says.
The parliament had given a green signal to the change as part of Finance Bill by amending FEMA 1999.
The FEMA Act is instrumental in maintaining a stable economy since it enables RBI to exercise capital control via a multitude of instruments.
Post consulting RBI, the government is likely to notify the latest development, as per a senior finance ministry official.
Foreign Direct Investment worth Rs. 52,937 crore flowed into the country via Foreign Investment Promotion Board (FIPB)., however the same happened post getting approval from FEMA, as mentioned in the report.
The Foreign Exchange Management Act (FEMA) provision has been deleted, one that allowed the central bank to limit or regulate cross-border transactions or transfer of immovable property to foreigners, a report says.
The parliament had given a green signal to the change as part of Finance Bill by amending FEMA 1999.
The FEMA Act is instrumental in maintaining a stable economy since it enables RBI to exercise capital control via a multitude of instruments.
Post consulting RBI, the government is likely to notify the latest development, as per a senior finance ministry official.
Foreign Direct Investment worth Rs. 52,937 crore flowed into the country via Foreign Investment Promotion Board (FIPB)., however the same happened post getting approval from FEMA, as mentioned in the report.
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