Arvind Mayaram panel on FDI, FII to finalise report by month-end

NEW DELHI: A high-level panel headed by Economic Affairs Secretary Arvind Mayaram will finalise by the month end its report on the definition of FDI and FII, aimed at removing ambiguity on the two types of foreign investment.

"The Committee is likely to meet after October 15 to give a final shape to the definition of FDI and FII. The report is expected to be finalised by month end," a government official said.

The government set up a four-member committee headed by Economic Affairs Secretary Arvind Mayaram to define foreign direct investment (FDI) and foreign institutional investment (FIIs) and remove the ambiguity between them.

The other members of the committee are the Secretary in the Department of Industrial Policy and Promotion (DIPP), the Deputy RBI Governor and a wholetime member of market regulator Sebi.

Finance Minister P. Chidambaram in his Budget speech had proposed to follow the international practice with regard to definitions of FDI and FII.

Chidambaram proposed laying down a broad principle that would consider a stake of 10 per cent or less in a company as FII and an investment exceeding 10 per cent as FDI.