UoP to Host National Meet on Changes in FDI Policy.

PUNE: The new regulations for foreign direct investment  (FDI) in different sectors of the Indian economy, which are sought to be introduced by the Union government, will be up for a critical review at a two-day meet being organised by the University of Pune's (UoP) department of law here from November 28.

T S N Sastry, professor and head of UoP's law department, told TOI on Sunday, "The event will primarily focus on the sector-specific FDI guidelines and regulations, their implications and relating issues raised by the Reserve Bank of India (RBI). Last month, the Ministry of Commerce and Industry issued a set of notifications, which have given way to a number of queries by the RBI."

Sastry said, "Our attempt will be to bring about an elaborate discussion as regards to what is happening and how the government should proceed with the sought-after changes in the FDI policy. At least 70 to 80 big corporate representatives from different sectors will participate in the two-day deliberations."

Union minister of state for commerce and industry Jyotiraditya Scindia has confirmed his presence at the inauguration, Sastry said.

A theme paper drafted by the organisers, stated that since the opening of the economy in the early 1990s, India has become a hot market for FDI. According to the World Investment Survey of the UNCTAD, India has been ranked third in global FDI in 2009 and will continue to remain among the top five attractive destinations for international investors through 2010-11.

In the years to come, the country may reach the number one spot in terms of drawing FDI. Between August 1991 and April 2010, India has drawn $ 1,34,642 million investment in various sectors. To regulate the implications of such a huge flow of investments, the government adopted a policy perspective in 2003, which was revised in 2009 with a provision for periodic review every six months.

The government went on to introduce various types of investments in Indian companies through FDI such as, investment by registered foreign institutional investors (FIIs), investments by non-resident Indians, investments through deposit receipts, foreign currency convertible bonds, convertible preference shares and currency debentures, among others.

Apart form this, concepts like a single-window clearance through the Foreign Investment Promotion Board (FIB), ownership by Indian resident companies, control by Indian residents, down stream investments, investing company with no additional conditions of no back door entry etc., were introduced.

Pastry said, "These measures have helped in eliminating the initial confusion vis-?-vis Fiddles. There are still some unanswered queries, which the RIB raised recently."

This includes concen about the rationale behind sector-specific regulation, application of regulations on a retrospective or prospective basis, SDI in banking sector falling under scrutiny of the central bank and the approach to be taken by the department of industrial policy and promotion towards the companies which have already made investments under the automatic route that existed prior to the consolidated SDI policy.

Source : timesofindia.indiatimes.com