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| New FDI norms fails to give a clear picture: KPMG |
| Press Trust of India / New Delhi Mar 01, 2009, 16:49 IST |
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The revised foreign direct investment (FDI) guidelines have failed to give a clear picture and the government should clarify the doubts further, global consultancy services firm KPMG said.
Elaborating the government's FDI policy, KMPG India Associate Director Ravi Shingari told PTI, "The new FDI guidelines have failed to clarify the doubts raised by Press Note 2 and Press Note 4 and in turn have raised more doubts."
On February 11, the government changed FDI policy and excluded indirect investment through domestic companies from overall sectoral ceilings which led to criticism that the new policy allows FDI in multi-brand retail through "back door".
And on February 26, it virtually scrapped the leeway given in its revised FDI policy to foreign firms to enter Indian multi-brand retail sector trough a circuitous route.
But still there are questions that are unanswered and doubts that are yet to be cleared, experts say adding that a there are many contradictions in the FDI policy.
Besides, the new guidelines do not give a clear definition of "investing company" and "investing and operating company", and it does not clarify the concept of ownership and control.
"As and when we go into the details of the FDI policy we find many contradictions that oppose to the main or the central guideline of Press Note 4," Shingari added.
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