FinMin wants FDI in airlines within SEBI framework

New Delhi: The Finance Ministry is understood to have given the green signal to the proposal to allow 26 per cent FDI by foreign airlines in the private carriers, many of them facing a cash crunch, with a rider that such investments should not violate Sebi's takeover code.
The Department of Industrial Policy and Promotion (DIPP) had proposed 26 per cent foreign direct investment (FDI) by foreign airlines into the domestic industry in the backdrop of Kingfisher Airlines slipping into a severe debt crisis and several others facing resource crunch.
While approving the draft Cabinet note on FDI in airlines, the Finance Ministry has suggested the (DIPP) consult the Securities and Exchange Board of India (Sebi) on the issue as several airlines, including Kingfisher and Jet Airways are listed companies, sources said.
"We have asked DIPP to consult Sebi so that their regulations do not come in conflict with the Takeover Code," a senior Finance Ministry official told PTI.
05/12/11 PTI/Economic Times

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Categories: Foreign Dec 2011, Indian Aviation- In General Dec 2011