Narendra Modi govt allows foreign retail investors to have more than one joint venture

By: |
New Delhi | Published: July 7, 2015 8:07:31 PM

Clarifying norms for single brand retail trading, Narendra Modi led government today allowed foreign investors to conduct business through more than one joint venture in India.

narendra modi on foreign retail investorsNarendra Modi govt also clarified that the foreign direct investment (FDI) policy on single brand retail trading equally applies to Indian brands seeking foreign investment.

Clarifying norms for single brand retail trading, Narendra Modi led government today allowed foreign investors to conduct business through more than one joint venture in India.

“A non-resident entity or entities, whether owner of the brand or otherwise, shall be permitted to undertake single brand product retail trading in the country for the specific brand, directly or through a legally tenable agreement with the brand owner for undertaking single brand product retail trading.

“Such non-resident entity or entities can undertake single brand retail trading business through one or more wholly owned subsidiaries or joint ventures,” the DIPP said.

The Department of Industrial Policy and Promotion (DIPP) clarified this as there was a confusion whether the brand owner or non-resident entity/entities can undertake single brand retail trading of the specific brand through more than one company in India.

It has also clarified that the foreign direct investment (FDI) policy on single brand retail trading equally applies to Indian brands seeking foreign investment.

 

For Updates Check Economy News; follow us on Facebook and Twitter

Do you know What is Centrally Sponsored Scheme, Non Tax Revenue, Non Debt Capital Receipts, Consolidated Fund of India, Disinvestment? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Manohar Parrikar likely to meet protesters demanding OROP: Reports
2Greek PM Alexis Tsipras likely to present new proposals at Eurozone meeting
3In or out of euro zone? Last chance for Greece to decide as cash runs out