The Government of India has decided to raise the limit for external commercial borrowings to $30 billion from $20 billion before, a senior finance ministry official said on Friday. The government has decided not to raise the foreign institutional investor limit in government bonds, said the official, who did not wish to be named. FIIs can invest up to $10 billion in government bonds currently.
Rules For Overseas Direct Investment Eased.
The Reserve Bank of India (RBI) said on Friday Indian companies having wholly owned subsidiaries abroad or having at least 51 per cent stake in an overseas joint venture are now allowed to write off capital or other receivables in respect of the joint venture or subsidiary.
The central bank said any such write-off or restructuring will have to be reported to the RBI within 30 days of the write-off.