FDI in power exchange, oil and gas refining to be automatic

New Delhi, July 16 (IANS) Maintaining the 49 percent foreign direct investment (FDI) cap for power exchanges and the petroleum and natural gas refining sector, the government Tuesday changed the invesment route for companies to automatic.

Under the existing policy, investment proposals in these two sectors were to be approved by the Foreign Investment Promotion Board (FIPB)

In petroleum and natural gas refining, FDI up to 49 percent is allowed in case of public sector undertakings without involving any divestment or dilution of domestic equity.

For power exchanges also, the 49 percent cap remains but approvals now will be through the automatic route.

Automatic approval is available through Reserve Bank of India A company is only required to report to RBI within 30 days of receipt of foreign equity or allotment of shares.

--Indo-Asian News service

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