In a significant move, the Department of Industrial Policy and Promotion (DIPP) has reviewed the Foreign Direct Investment (FDI) policy on various sectors regarding allowing 100 per cent FDI in single brand product retail trading and the appointment of Auditor for the Company in India.
A press note issued last day said that “Wherever the foreign investor wishes to specify a particular auditor/audit firm having an international network for the Indian investee company, then an audit of such investee companies should be carried out as joint audit wherein one of the auditors should not be part of the same network.”
It further laid down certain conditions for FDI in Single Brand product retail trading.
Earlier, with an aim to strengthen corporate governance in firms with foreign investment, and indirectly promoting local audit firms, the Government has brought in changes in the foreign direct investment (FDI) policy with respect to audit firms.
As per the policy, a foreign investor cannot have an Indian firm, in which it has invested, audited by a company of their choice unless it is a joint audit with an independent auditor.
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