New
Delhi: The union cabinet has decided that investors
in foreign banks operating in India will get voting rights
proportionate to the foreign direct investments (FDI)
in such banks. In his budget speech, Finance Minister
Jaswant Singh had announced that FDI cap in foreign banks
will be raised to 74 per cent from 49 per cent.
But
the voting rights were restricted to 10 per cent foreign
equity so far. An amendment to Section 12 (2) of the Banking
Regulation Act to this effect will be introduced in the
current session of the Indian parliament. This was disclosed
by Parliamentary Affairs Minister Sushma Swaraj after
a cabinet meeting.
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