Another setback in allowing foreign direct investment (FDI) in the retail sector has taken retail stocks into the red this morning. Officials close to the developments say the government is likely to take a call on the matter only in the next financial year. The officials say no “concrete move" has yet been taken to take the matter to the Union cabinet for approval after the recommendation of the Committee of Secretaries (CoS) on July 22 to allow 51% FDI.
A lack of political will is seen as the main reason for the government not taking up the proposal actively, even two months after the in-principle nod by the CoS. A secretary, who was part of the CoS, said the safeguards or riders in allowing FDI in multi-brand retail were still in the process of being ironed out.
Among individual stocks, Pantaloons Retail has dropped 4% to Rs 268. Brandhouse Retail has slipped 2% to Rs 15.15. Store One Retail and Trend are also trading in the negative zone.
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