The Exchange Control by Gazette notification No.1232/14 dated 19th April 2002 has further relaxed the existing limitations on foreign investments imposed by Gazette Notices of 721/4 dated 26th June 1992 and 1122/12 dated 7th Match 2000 as announced in the Budget of 2002. In terms of the above relaxation foreign investment up to 100% of the equity capital of companies involved in Stock Broking activities could be made free of Exchange Control, subject to Rules and Regulations stipulated by the relevant regulatory authorities.

Hence the requirement of obtaining approval of the Securities & Exchange Commission for foreign investments over 49%, as stated in the Gazette Notification of 1122/12 dated 7th march 2002 does not arise.

The other Financial Sectors where 100% foreign investment has been permitted are: ·


Banking

Finance

Insurance