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Rules for MNCs to give 26% stake to Indians still in force: FM
February 21, 2003 17:02 IST
The guidelines for multinational companies to grant 26 per cent stake to Indians are still in force, Lok Sabha was informed on Friday.
Stating that there were only 21 MNCs which had violated these guidelines laid down by the government, finance minister Jaswant Singh said during Question Hour that Sebi had on February 17 come out with detailed guidelines and instructions for MNCs to abide by.
He was replying to a question by Nitish Sengupta on whether large number of foreign companies were taking advantage of the liberalisation policy to get back 100 per cent stake and delist themselves from stock exchanges.
Singh said since 1997-98 and 2002-03, 62 companies had been delisted from stock exchanges, including 21 foreign firms. "This cannot be termed as very large number," he said.
While guidelines that Indians can invest in these companies and become shareholders 'have not been abandoned,' these were 'also not being fully abided by,' Singh acknowledged.
These conditions, which were prepared when India started seeking foreign investment, 'remain and cannot be altered,' he said.
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