Govt. relaxes overseas investment norms
Govt. relaxes overseas investment norms With a view to provide greater flexibility to Indian companies and partnership firms for investments abroad, the existing limit of 300% of net worth of the Indian companies (200% in case of registered partnership firms) has been enhanced to 400%, of the net worth of Indian party. To provide greater opportunities to listed Indian companies for portfolio investments, the existing limit of 35% has been enhanced to 50% of net worth of the investing company. It has also been decided to do away with the requirement of a reciprocal 10% share holding in Indian companies. Accordingly, listed Indian companies are now permitted to invest up to 50% of their net worth in shares and fixed income securities issued by listed overseas companies.
