The key takeaways from the Union Budget included measures for encouraging foreign investment in India.
An important aspect of such measures was the proposal to do away with the distinction between different types of foreign investments, especially between the Foreign Direct Investment and Foreign Institutional Investors.
Union finance minister Arun Jaitley in his Budget speech said this was being done to simplify procedures associated with Indian companies receiving foreign investment.
Welcoming the move, Ajay Garg, managing director, with Equirus Capital, said, “Removing the distinction between the FDI and FIIs will help private sector banks.” “This is because there is still a room to reach the foreign limit in some private banks.”
It is expected that Axis Bank may be one of the banks where foreign investment limit can be increased.