At present, the Bill is pending under consideration before the Standing Committee on Finance and no fixed time frame can be specified at this stage.
Indian companies have been granted general permission for conversion of external commercial borrowings (ECB) (excluding those deemed as ECB) in convertible foreign currency, into equity shares/fully compulsorily and mandatorily convertible preference shares. General permission is also available for issue of shares/preference shares against lump sum technical know how fee, royalty. From 1.4.2011, import of capital goods/ machinery/equipment and pre operative/ pre incorporation expenses have also been included for issue of shares against non cash considerations (all of the above being subject to specified conditions).
The policy on FDI is reviewed on a continuing basis, with a view to its further liberalization and increasing its investor friendliness.
