Vol 3, PW 12 (07 Jul 99) News in Brief

Foreign companies who want to increase the equity base of their Indian holding companies no longer need approval from the Foreign Investment Promotion Board (FIPB).

In a note issued by the Department of Industrial Policy and Promotion (Ministry of Trade), Ashok Kumar, Joint Secretary, writes: "Henceforth there is no need to obtain prior approval of the FIPB for an increase in the amount of foreign equity within the percentage of foreign equity already approved. Any company can henceforth inject additional equity funds as long as the percentage of equity does not change".

The ruling only applies to ventures where the initial investment is less than Rs6,000 cr ($1.42bn). Principal beneficiaries of the new ruling will be foreign LPG and lubricant ventures.