India’s largest private sector lender, ICICI Bank, on Tuesday sought clarification on the new foreign direct investment (FDI) norms.
As per the new norms, if indirect FDI in an Indian company exceeds 50%, its investment in subsidiaries will be treated as foreign investment, which would mean a change in the ownership status of se
veral Indian banks.
“Shareholding pattern of the banks have remained like this for many years now. Nothing has changed in the ownership pattern of the bank,” ICICI Bank joint managing director Chanda Kochhar told mediapersons on the sidelines of an event organised by industry body Ficci. If there are further clarifications on the new norms, everyone is waiting for that, Ms Kochhar said.
Soon after the issuance of the new FDI guidelines, the Reserve Bank of India (RBI) wrote to the department of industrial policy and promotion (Dipp), pointing out that seven banks—including ICICI Bank, HDFC Bank, Development Credit Bank and ING Vysya—would cease to be counted as Indian-owned under the revised norms and has sought a review of the new norms. Dipp is the nodal FDI policymaking body.
ICICI Bank, on its part, has also written to Dipp saying it’s not a foreign-owned bank and should not be covered by the new guidelines. If classified as foreign-owned, the bank’s downstream investments will also be counted as FDI, barring it from investing in sectors that have caps, such as banking itself.
Source : www.economictimes.indiatimes.com/Economy/ICICI-awaits-clarification-on-FDI-norms/articleshow/4461571.cms
As per the new norms, if indirect FDI in an Indian company exceeds 50%, its investment in subsidiaries will be treated as foreign investment, which would mean a change in the ownership status of se
veral Indian banks.“Shareholding pattern of the banks have remained like this for many years now. Nothing has changed in the ownership pattern of the bank,” ICICI Bank joint managing director Chanda Kochhar told mediapersons on the sidelines of an event organised by industry body Ficci. If there are further clarifications on the new norms, everyone is waiting for that, Ms Kochhar said.
Soon after the issuance of the new FDI guidelines, the Reserve Bank of India (RBI) wrote to the department of industrial policy and promotion (Dipp), pointing out that seven banks—including ICICI Bank, HDFC Bank, Development Credit Bank and ING Vysya—would cease to be counted as Indian-owned under the revised norms and has sought a review of the new norms. Dipp is the nodal FDI policymaking body.
ICICI Bank, on its part, has also written to Dipp saying it’s not a foreign-owned bank and should not be covered by the new guidelines. If classified as foreign-owned, the bank’s downstream investments will also be counted as FDI, barring it from investing in sectors that have caps, such as banking itself.
Source : www.economictimes.indiatimes.com/Economy/ICICI-awaits-clarification-on-FDI-norms/articleshow/4461571.cms
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