Business Environment, 1st Edition by Pearson

Chapter 38: Globalization, MNCs and Foreign Capital in India | 489 |

In recent times, the Government of India relaxed a number

of norms that guide these worldwide commercial cum fi nancial

instruments with a view to enhance infl ow of foreign capital. Most

important of these relaxations are the following:

 Indian bidders are now permitted raising funds through

ADRs, GDRs and ECBs for getting shares of PSEs in the

fi rst stage and buying shares from the market during the

open offer in the second stage.

 ADR/GDR proceeds can be retained abroad for future needs

of foreign exchange, and the limit of USD 20,000 for remit-

tance under the employees stock option scheme (ESOP) has

been removed and remittance up to USD 1 million from pro-

ceeds ...