Modi Cabinet Expected To Approve PSU Bank Merger, Changes To FDI Policy In Air India DisinvestmentAn Air India aircraft (Twitter/@KenyaAirports)

The Union Cabinet in its meeting on Wednesday (4 March) is likely to clear a bunch of proposals including amendments to the Companies Act for decriminalising many sections, merger of 10 PSU banks to four and changes in FDI policy for Air India disinvestment.

Official sources said foreign listing of domestic companies for raising funds at cheaper rates are also likely to be cleared.

As many as 43 sections of Companies Act will be decriminalised through Cabinet approval. The PSU banks'' merger would take effect from April 1 once the Cabinet approves it.

At present, in order to tap foreign investors, Indian firms take up American Depository Receipts (ADR) or Global Depository Receipts (GDR) route.

Apart from foreign funds being cheap, the move could also be a sign of inching towards greater capital account convertibility. ICICI Bank, Infosys, HDFC Bank and Reliance Industries have raised funds via this route.

The story has been published via a syndicated feed, only the headline has been changed

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber