Minimum $250-m FDI for foreign car makers mooted
New Delhi: The department of heavy industry in its new draft auto policy is believed to have proposed a minimum direct investment of $250 million within the first three years of operations by overseas firms for manufacturing cars in India. The department has asked foreign/non-resident Indian/overseas corporate bodies investor for a minimum foreign direct investment of $100 million and $25 million from any venture for making commercial vehicles and two/three-wheelers, respectively.

The policy states that "the equity may be invested entirely in the automobile plant or jointly therein and in one or more ventures created to vend components and in which the same foreign/NRI/OCB investor holds a majority of the equity". Existing manufacturers with minority foreign equity holding will be required to fulfil conditions like minimum foreign equity investment, investment in one or many joint ventures or in a R&D facility by the car makers.

The draft auto policy, which has been sent to the union cabinet for consideration.
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RBI restricts buying in Global Trust Bank
Mumbai: The Reserve Bank of India (RBI) has notified against further purchase of shares of Global Trust Bank in the secondary market on behalf of NRIs, overseas corporate bodies and persons of Indian origins. A RBI release said the holdings by the NRIs, OCBs and PIOs have reached the overall ceiling of 10 per cent of its paid-up capital.
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