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FDI restrictions in tobacco companies likely soon: Report
The report also claimed that the proposal is currently under deliberation before the Commerce Ministry and may be sent to the Cabinet for approval.
Foreign Direct Investment (FDI) in the tobacco sector could reportedly see restrictions being imposed in the coming days. Sources in the know told CNBC-Awaaz that the government is considering to widen the ambit of FDI curbs for cigarette manufacturing companies.
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This could also include restricting foreign investment in technology tie ups, as per the report.
As per the proposal, FDI in any franchise of tobacco products, trademark and any branding of tobacco and similar substitutes may soon see FDI restrictions being imposed, the report claimed.
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Currently, any FDI in the manufacturing of tobacco products is not permitted under government regulations.
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Following the report, shares of ITC, Godfrey Phillips, VST Industries, NTC Industries and Golden Tobacco fell by between 1-3 percent.
