Implications of the New FDI Regime: Clarifications Required for Effective Implementation
SEBI and Corporate Laws, Vol. 96, No. 4, p. 70, December 2009
14 Pages Posted: 17 May 2010
Date Written: May 17, 2010
Abstract
The Foreign Direct Investment (hereinafter referred as ‘FDI’) is usually preferred over other forms of external finance because they are non-debt creating, non-volatile and their returns depend on the performance of the projects financed by the investors. Over the years India has attracted FDI in various sectors and the trend suggests that it is growing. However, there is still a huge potential to absorb greater flow of FDI. The present paper explores the dimensions of the new FDI norms issued via Press Notes 2, 3 and 4 earlier this year. The paper analyses the impact of these Press Notes while highlighting the key concerns which might arise during their implementation.
Keywords: Press Note 2, 3 & 4 of 2009, Concerns, Implementation & FDI
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