Finance Minister on 10th January, has announced that individual
investors and listed Indian companies would soon be permitted to
invest in listed companies in overseas stock exchanges. Besides
increasing the overall cap for investment abroad by mutual funds to
$1 billion, the Government has also decided to permit mutual funds to
invest abroad in companies that are listed in overseas stock
exchanges.

However, the companies in which they are investing should each have a
shareholding of at least 10 per cent in a listed Indian company on
January 1 of the year of investment. Further, in the case of
investments abroad by listed Indian companies, the investments should
not exceed 25 per cent of Indian company's net worth as on the date
of the last audited balance sheet. Indian companies would now also be
given a general permission to retain American depository receipts
(ADRs)/global depository receipts (GDRs) proceeds abroad for further
forex requirements. Corporates that have set up their branches and
offices abroad would be permitted to acquire immovable property
overseas for their business and staff residential purposes.

On transfer of assets in India, remittance of proceeds up to $ 1
million is being permitted in the case of individuals. The existing
limit of $20,000 for remittance under the Employees Stock Option
Programme (ESOP) scheme is also being removed.

For more visit at: http://www.banknetindia.com