Interestingly, while the cap s on FDI in comm odity exc hanges, powe r exchan ges, stock exchanges, depositories

and clearing houses have been retained at 49 per cent (26 p er cent FDI and 23 per c ent foreign institutiona l in vestm en ts), the proc edures of investm ent ca n now com e throu gh a utoma tic route. It was also d ecided in the m eeting that the c lause which requires tea and other plantation companies, in which 100 per cent FDI is perm itted, h ave to divest 26 per cent eq uity in favour of Indians with in five years should be removed.
T h e seco n d w av e o f eco n om ic refo rm s h as b een w i d el y l au d ed b y t h e in v est o rs, asso ci ati on s an d th e d o m est ic i n d u st ry . G o i n g fo r w ard , th e an n ou n c em en t s can b e ex p ect ed to b rin g i n ad d it io n al fo rei g n i n flo w s t o sp u r t h e g ro w t h o f th e eco n o m y.

S . N o 1 2 3 4

S e c tor P e tr o l e u m a n d N a t u r a l G a s a n d R e f in in g C o m m o d ity E x c h a n g e s P o w e r E x c h a n g e s S to c k E x c h a n g e s , D e p o s it o r ie s , C o r p o r a t io n A s s e t R e c o n s tr u c t io n c o m p a n ie s C r e d it I n f o r m a t io n c o m p a n ie s S in g l e B r a n d R e ta i l t r a d in g

C a p 4 9 % 4 9 % 4 9 % 4 9 % U p to 4 9 % 4 9 % to 1 0 0 % 7 4 % U p to 4 9 % 4 9 % to 1 0 0 % U p to 4 9 % 4 9 % to 1 0 0 % 1 0 0 %

R o u te A u t o m a t ic A u t o m a t ic A u t o m a t ic A u t o m a t ic A u t o m a t ic F IP B A u t o m a t ic A u t o m a t ic F IP B

8 9

B a s ic a n d C e l lu la r S e r v i c e s , e tc . C o u r ie r S e r v ic e s

A u t o m a t ic F IP B A u t o m a t ic C C S m a y a pp ro v e p ro p o sa ls o n c a s e t o c a s e b a s is b e y o n d 2 6 % w h ic h a r e li k e l y to r e s u lt in a c c e s s t o m o d e rn a n d state o f th e a rt te c h n o l o g y

1 0

D e f e n c e P ro d u ction