Key highlights of Budget speech:
- It is being contemplated to permit 100% FDI for insurance intermediaries.
- Local sourcing norms will be eased for FDI in Single Brand Retail sector.
- It is proposed to merge the NRI-Portfolio Investment Scheme Route with Foreign Portfolio Investment Route with a view to provide NRIs with seamless access to Indian equities.
- The Government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.
- FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
- Union Budget 2019-20 propose to increase the statutory limit for FPI investment in a company from 24% to sectoral foreign investment limit with option given to the concerned corporates to limit it to a lower threshold, the Minister added.
- it is proposed to rationalize the existing Know Your Customer (KYC) norms for FPIs to make it more investor friendly without compromising the integrity of cross-border capital flows.
