During June 2007, FIPB met once and cleared 17 foreign direct investment (FDI) proposals. The Rs.42 crore FDI proposal of Starlight Real Estate, Mauritius was the largest proposal to get the FIPB nod. The company intends to set up a wholly owned subsidiary to develop hotels, hospitals, industrial parks and SEZs in India.

Amalgamation Plantation of Kolkata received the FIPBC clearance’s green signal to issue 20 per cent equity to IFC and collect Rs.35 crore in foreign currency. The company plans to invest the fund into tea plantation, horticulture, pisiculture, floriculture, etc

In June 2007, FIPB refused to clear two major proposals on the policy front. It rejected ICICI Bank's proposal to sell 24 per cent in ICICI Financial Services, (the holding company for its insurance and asset management ventures), to foreign investors. The rejection was based on the reasoning that CICI Bank did not comply with the 26 per cent cap on FDI in insurance ventures. ICICI Bank's life and non-life insurance companies have 26 per cent equity from Prudential and Lombard, respectively.

FIPB asked New Horizons Retail, a JV floated to enable Starbucks’ entery into India, to revise its application for entering India. The action was taken following suggestions from the department of commerce & industry (DIPP) that Starbucks should enter India through the FDI route, instead of a franchisee arrangement.

During June, the petroleum and civil aviation ministries recommended a hike in FDI limits in their respective sectors. Following Mr. L N Mittal's willingness to take up 49 cent equity stake in HPCL’s much delayed Bhatinda refinery, the Union Petroleum Ministry recommended an increase in the upper limit of FDI in PSU petroleum refineries from 26 per cent to 49 per cent. FIPB considering Mr. Mittal's proposals has referred the case to the Union Cabinet Committee. The proposal was later cleared by the Union Cabinet Committee on 21 June 2007.

The Union civil aviation ministry has proposed to raise the FDI limit from current 49 per cent to 74 per cent in cargo carrier companies.

In a major policy decision, the Reserve Bank of India barred companies from raising funds overseas through issue of optionally and partially convertible bonds, under FDI regulations. As per the RBI guidelines, companies will now be allowed to sell only bonds that compulsorily convert into equity within a specified timeframe. The clarification comes after the RBI discovered Indian companies raising funds overseas by selling hybrid instruments, which were essentially debt.