Finance Secretary Arvind Mayaram-led panel’s report which had suggested that foreign investment of 10 per cent or more in a listed company should be treated as FDI, has been accepted by the Government.
Finance Ministry in a statement on Saturday said the Government has accepted the report of the committee headed by Finance Secretary Arvind Mayaram.
It said an investor may be allowed to invest below 10 per cent and "this can be treated as FDI subject to the condition that the FDI stake is raised to 10 per cent or beyond within one year from the date of the first purchase".
If the stake is not raised to 10 per cent or above, then the investment can be treated as portfolio investment.