Finance Ministry has asked the Foreign Investment Promotion Board (FIPB) to review the FDI policy in the telecom equipment manufacturing sector in a bid to tighten controls, according to reports.
Reports stated that at present, foreign equipment manufacturing companies are allowed to own 100% stake in their Indian subsidiaries.
The review follows a report released by a US Congressional panel that warned American companies against buying equipment from Huawei and ZTE.
While both Huawei and ZTE have dismissed these allegations, the Indian authorities want to do their own due diligence, says report.
India Infoline News Service / 09:04, Jan 22, 2015
The outlook is a flat start. The market will look to scale to new peaks though not much effort is needed for the same. HUL saw a rally and short-covering may have pulled it up further. Speculation is on that its parent will raise stake through an open offer. After the cooling in oil prices, Cairn results will be in focus.