Nri Investment Norms Eased

The government yesterday permitted non-resident Indians (NRIs) and overseas corporate bodies (OCBs) to invest in unlisted companies under the portfolio investment scheme and also eased norms to ensure their greater participation in the health sector.

A finance ministry release says such investments will be in conformity with norms and approval procedures applicable to portfolio investments under the scheme and persons of India origin and OCBs will be permitted this facility.

The government also freed NRIs of the condition that medical centres be equipped as per health ministry norms and that 25 per cent of the facilities available in hospitals are provided free of cost to the poor and needy.

 

Scrapping of these conditions are without prejudice to any conditions agreed to by companies while availing any special incentives or concessions.

The moves follow representations from NRIs that mandatory offer of free facilities would render investments in health and diagnostic centres unviable and that conditions on equipping diagnostic centres as per specified norms were unduly restrictive.

Detailing the relaxation regarding portfolio investment, the release says the investment limit by a single NRI or OCB will be subject to a ceiling of 5 per cent of the paid-up equity capital of the investee company.