‘FDI in private security requires change in Act’

June 21, 2016 10:48 pm | Updated October 18, 2016 03:01 pm IST - NEW DELHI:

The Centre will need to amend the Private Security Agencies Regulation (PSAR) Act (2005) to help in implement its decision to allow foreign direct investment of up to 74 per cent in private security agencies, an official of a trade body said.

“Given that investment in the private security sector is capped at 49 per cent as result of the provisions under the PSAR Act (2005), the Government’s decision to allow majority foreign ownership in private security industry up to 74 per cent would require amendments to the PSAR Act (2005),” Rituraj Sinha, Co- Chair, FICCI Committee on Private Security Industry said.

“The private security industry welcomes the announcement towards relaxation of foreign investment in the sector. Allowing up to 49 percent FDI under the automatic route shall add to ease of doing business significantly and is expected to expedite the investment process in the sector substantially,” Mr. Sinha said.

However, he added that the private security industry, which has a huge employment generation potential, shall soon be engaging with the Department of Industrial Policy and Promotionand the Home Ministry to clarify the Centre’s decision.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.