Remove barriers for FDI, says Assocham

New Delhi, Januray 20: | Updated: Jan 21 2002, 05:30am hrs
To give a fillip to foreign direct investment (FDI) flow into India, which have been stagnating at $ 2 billion annually (0.5% of GDP), the Associated Chambers of Commerce and Industry of India (Assocham) has urged the government to re-look at the policy towards foreign investors and frame easy entry and exit regulations.

The chamber has pointed out that “The barriers on foreign shareholders to exit are evident as the sale of shares by them to other foreign shareholder is subject to approval by the Foreign Investment Promotion Board (FIPB). However, an Indian shareholder selling his shares to anybody does not require approval of Reserve Bank of India (RBI) or FIPB.”