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Finmin not opposing new FDI norms

The Finance Ministry now says it does not have any objection to new rules that changed the criteria for calculation of foreign ownership in a company and its downstream investment.

business Updated: Sep 20, 2009 15:34 IST

Shedding earlier reservations over some aspects of the controversial new FDI guidelines, the Finance Ministry now says it does not have any objection to new rules that changed the criteria for calculation of foreign ownership in a company and its downstream investment.

However, whether the new scenario will pave the way for Bharti-MTN deal to comply with sectoral caps is not yet clear.

"We are not opposed to Press Notes (2,3 and 4). Earlier, we may have some opposition to some aspects of these Notes. We are doing everything to implement these notes, approved by the Cabinet," a key source said here.

He said the Foreign Investment Promotion Board (FIPB) has been approving cases, based on these notes.

When asked whether Bharti-MTN deal will require FIPB permission to go through or will it breach the sectoral cap as per the new norms, he said the board has not taken a call on it as the deal has not come to it.

The deal to create the world's third largest telecom company with 200 million subscribers and over 20 billion dollars of revenue is still in negotiating stage and is yet to fructify as it has to cross some hurdles, including dual listing of MTN on South African and Indian bourses with equal voting rights.