RBI notifies changes to Fema, definition of 'control'

Updated: Sep 14 2013, 18:53pm hrs
The Reserve Bank of India has notified changes to the Foreign Exchange Management Act (Fema), adjusting sector-specific conditions and also the definition of control. Control shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholder agreements or voting agreements, the RBI said.

It also said states that have agreed to the changes in the multi-brand retail FDI policy have been given the go-ahead, adding, Himachal Pradesh and Karnataka have given consent to implement the FDI policy... as such the list of states/UTs which have conveyed their concurrence stands modified.