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Indian finance minister proposes slew of sops for diaspora

>From Indo-Asian News Service

New Delhi, Jan 10 (IANS) Finance Minister Jaswant Singh Friday unveiled a
slew of proposals to ease the regulations on investment into India by people
of Indian origin (PIO) scattered in different parts of the world.

The government proposes to remove the existing limit of $20,000 for
remittances under the employees stock option programme, Singh told a
high-profile three-day event for overseas Indians that started here
Thursday.

Nearly 1,400 non-resident Indians (NRIs) and PIO from 60 countries are
attending the three-day "Pravasi Bharatiya Divas" or Indian Diaspora Day.
Many of them have journeyed to the land of their forefathers for the first
time.

Besides, 600 delegates from India are also participating in the convention.

The conference, being jointly organised by the Indian external affairs
ministry in collaboration with the Federation of Indian Chambers of Commerce
and Industry (FICCI), is part of a move by the government to form closer
ties with the Indian diaspora.

The event has brought together government leaders, diplomats, politicians,
businessmen, journalists, community leaders and other achievers in a unique
gathering.

"We also propose to allow corporates, who have set up their branches and
offices abroad, to acquire immovable property overseas for their business or
staff residential purposes," Singh said, amid loud applause by the Indian
diaspora.

The mutual funds in India will also be allowed to invest abroad in companies
that are listed on overseas stock exchanges and that have at least 10
percent shareholding in a company listed on a recognised stock exchange in
India on January 1 of the year of investment.

"Apart from companies, individuals are also being permitted to invest abroad
in companies that are listed on overseas stock exchanges, and that have at
least 10 percent shareholding in a company listed on a recognised stock
exchange in India on January 1 of the year of investment," the minister
said.

"With regard to transfer of assets in India, remittance of proceeds up to $1
million is being permitted," he added.

"This is not the end. This is just the beginning. We will progressively make
more such announcements."

--Indo-Asian News Service

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