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Centre mulls 100 per cent FDI in commodity broking biz
October 07, 2008: The government may soon allow 100 per cent FDI in commodity broking business. The proposal has obtained in-principle approval of the finance ministry and department of industrial policy & promotion The final stand will be taken after receiving views of Reserve Bank. As of now, only 12 services under the financial services category are open for FDI.
Earlier this year, the Cabinet approved FDI up to 26 per cent in commodity exchanges, subject to the condition that no single investor would hold more than 5 per cent.
If the government allows such a proposal to go through, it will encourage large foreign brokerage houses to enter into the country and also help the nascent Indian commodity business to mature.
Source: Economic Times