The Finance Ministry on Tuesday notified the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2021 wherein it allowed Foreign Investments up to 100% under automatic route in case an ‘in-principle approval for strategic disinvestment of a Public Sector Undertakings (PSUs).
In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in Schedule I, in the Table, after Sl no. 4.2, the following entries shall be inserted namely, “Notwithstanding anything contained at Sl. No. 4.2 above, foreign investment up to 100% under the automatic route is allowed in case an ‘in-principle approval for strategic disinvestment of a PSU has been granted by the Government.”
The Schedule I of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 pertains to the Purchase or sale of equity instruments of an Indian company by a person resident outside India.
This year in the month of July, the government has permitted 100 percent foreign investment under the automatic route in oil and gas PSUs which have received in-principle approval for strategic disinvestment.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
