New Delhi simplifies foreign investment rules

New Delhi

INDIA has simplified rules for foreign investment in companies by clubbing together different categories, Finance Minister Arun Jaitley said on Thursday, effectively giving equal treatment to global capital entering Asia's third-largest economy.

The move, flagged by Mr Jaitley in his budget in February, will make it easier for banks such as Yes Bank and Axis Bank to raise capital up to a foreign ownership limit of 74 per cent, say analysts. "One of the most important decisions in relation to the investment is the introduction of composite caps for simplification of foreign direct investments," Mr Jaitley told reporters after a Cabinet meeting.