21-Sep-2012 10:08 AM

Indian Government notifes Cabinet on FDI in aviation

India's Government notified (20-Sep-2012) the cabinet/CCEA decisions on foreign direct investment (FDI) in civil aviation, in addition to single brand retail, multi brand retail, broadcasting sector and power exchanges. The decisions were taken in the Cabinet and CCEA meetings on 14-Sep-2012. "The Government of India has reviewed the position in this regard and decided to permit foreign airlines also to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49 per cent of their paid up capital," the notification said. The investments would be made under the government approval route and the parties need to comply with regulations of Securities and Exchange Board of India, like issue of Capital and Discloser Requirement and Substantial Acquisition of Shares and Takeovers Regulations, as well as other applicable rules and regulations, the notification said. Earlier, no foreign airlines were allowed to invest in Indian carriers directly or indirectly. [more - original PR]

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