Government has constituted a four-member committee headed by Economic Affairs Secretary Arvind Mayaram for giving clear definitions to Foreign Direct Investment, FDI and foreign institutional investment , FII, with an aim to remove ambiguity over the two types of foreign investments. The DIPP Secretary, an RBI Deputy Governor and a SEBI Wholetime Member are the other members of the high power committee.
Talking to reporters in New Delhi today Mayaram said,it will take about two-and-a-half months to come out with the report.The committee has been constituted on pursuant to the budget announcements by the Finance Minister.
He, however said, the panel would look at definition of FDI and FII and not the foreign investment caps in different sectors.
At present, if an investor has a stake of 10 per cent or less in a company, the investment is treated as foreign institutional investment . If an investor has a stake of more than 10 per cent, it is treated as foreign direct investment .