Amendments to fema tabled for FDI in retail

The government today tabled four amendments to the regulations of the Foreign Exchange Management Act (FEMA) that are essential for the implementation of FDI in multi-brand retail decision.

The government on Friday tabled four amendments to the regulations of the Foreign Exchange Management Act (FEMA) that are essential for the implementation of FDI in multi-brand retail decision.

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The government, which had earlier argued that its executive decision on FDI did not require any parliamentary sanction, was asked by the Supreme Court to place its decision in both Houses. In fact, a new angle was provided by the opposition, particularly the Left parties, who argued that any changes in the FEMA provisions would require parliamentary approval.

With the opposition already sensing an opportunity to corner the government, UPA managers are trying to club the voting on two issues — on debate over FDI policy and the FEMA amendments — next week.

The parliamentary vote next week seeks symbolic rejection of the government’s FDI policy.

The FEMA vote is crucial for both sides as it could stall the implementation of the FDI in multi-brand retail in case the opposition wins in either House.