Further to our press release dated January 8, 1998 advising our intention to issue general permission for foreign investment under "the Automatic Route of RBI", the Reserve Bank of India has issued Notification No.FERA 180/98 RB dated January 13, 1998 under Sections 19(1) and 29(1) of the Foreign Exchange Regulation Act, 1973.

In terms of the notification, Indian companies can issue equity shares up to 50 per cent, 51 per cent and 74 per cent as the case may be, in respect of items/activities listed in Part A, Part B and Part C respectively of the list enclosed with Ministry of Industry Press Note No.14 dated October 8, 1997, after observing the terms and conditions governing grant of general permission.

The notification dated January 13, 1998 will also be available on the RBI website on the Internet at http://www.rbi.org.in on January 14, 1998.

Notification No.F.E.R.A.180/98: Permission for issue of equity shares to foreign investors under Automatic Route of Reserve Bank

(Alpana Killawala)
General Manager

Press Release : 1997-98/619