Committee on FDI, FII definition to meet on April 4

Updated - December 04, 2021 11:17 pm IST

Published - March 29, 2013 03:48 pm IST - New Delhi

Economic Affairs (DEA) Secretary Arvind Mayaram. File photo: Shanker Chakravarty

Economic Affairs (DEA) Secretary Arvind Mayaram. File photo: Shanker Chakravarty

A four-member committee headed by Department Economic Affairs (DEA) Secretary, Arvind Mayaram, for giving clear definitions to FDI and FII with an aim to remove ambiguity over the two types of foreign investments, is slated to hold its meeting next week.

“The meeting of committee is scheduled for April 4. The committee will take about two-and-a half months to come out with the report,” a senior finance ministry official said.

The DIPP Secretary, an RBI Deputy Governor and a SEBI whole-time member are the other members of the committee.

Mr. Mayaram had earlier said that there is a lot of confusion in mind of foreign investors because of distinction between FDI and FII.

Mr. Mayaram, however, had said, the panel would look at definition of FDI and FII and not the foreign investment caps in different sectors.

“We are looking at definition not cap. How do you define FDI, how do define portfolio investment... The committee will come up with the definition,” he had told PTI.

At present, if an investor has a stake of 10 per cent or less in a company, the investment is treated as foreign institutional investment (FII).

If an investor has a stake of more than 10 per cent, it is treated as foreign direct investment (FDI).

The Finance Minister P. Chidambaram in his Budget speech had proposed to follow the international practice with regard to defining FDI and FII.

The committee would be constituted to examine the application of the principle and to work out the details expeditiously, he had said.

0 / 0
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.