Sensitive FDI will go under FEMA lens
CoS has urged NSC to consult various government departments for amending FEMA.
By Gaurav Malani, TNN |
NEW DELHI: Even as the row over FDI in retail is yet to subside, the government is planning a series of amendments to the Foreign Exchange Management Act (FEMA) in order to address security concerns related to foreign investment. A new law is also being drafted to block FDI in sensitive sectors and sensitive areas of the country.
A committee of secretaries (CoS) headed by Cabinet secretary BK Chaturvedi has asked the National Security Council (NSC) to recommend amendments to FEMA and draft the proposed legislation. A decision to this effect was taken by CoS on February 6. The committee has also said RBI and FIPB should be drafted to check misuse of FDI by anti-national forces.
According to government sources, the council will draft the proposed law in consultation with the law ministry, Department of Industrial Policy & Promotion and Department of Economic Affairs. NSC has also been urged to work out a mechanism listing the standard procedures that will be followed to screen FDI whenever doubts arise.
A committee of secretaries (CoS) headed by Cabinet secretary BK Chaturvedi has asked the National Security Council (NSC) to recommend amendments to FEMA and draft the proposed legislation. A decision to this effect was taken by CoS on February 6. The committee has also said RBI and FIPB should be drafted to check misuse of FDI by anti-national forces.
According to government sources, the council will draft the proposed law in consultation with the law ministry, Department of Industrial Policy & Promotion and Department of Economic Affairs. NSC has also been urged to work out a mechanism listing the standard procedures that will be followed to screen FDI whenever doubts arise.
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