operation of fdi caps in india and corporate control mechanisms
TRANSCRIPT
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
1/23
G\GM
BYOXF]GBA BJ JMG LFY\ GA GAMGFFAM LBXYBXF]O LBA]XBE @OLKFAG\@\
Molo`hox 8969
^bxdgan Yfyox
Ab3 8969"66
D!\! Lkfefyf}g Xfb
Hg|~fcg} Mkfx
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
2/23
D!\! Lkfefyf}g Xfb
Hg|~fcg} Mkfx
Ga|}g}u}o jbx \}umgo| ga Gamu|}xgfe Mozoeby`oa}=% Ga|}g}u}gbafe Fxof% Zf|fa} Duac% Ao~ Moekg - 669 9>9
Ykbao3 $76 66 8:>: 6:994 Jf{3 $76 66 8:>: 6:
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
3/23
Ga|}g}u}o jbx \}umgo| ga Gamu|}xgfe Mozoeby`oa}% 8969
G\GM ^bxdgan Yfyox| fxo `ofa} }b mg||o`gaf}o }ko }oa}f}gzo xo|ue}| fam jgamgan|
bh}fgaom jxb` }ko banbgan xo|ofxlk fl}gzg}go| f} }ko Ga|}g}u}o fam }b f}}xfl} lb``oa}|
fam |unno|}gba| ~kglk `fw dgamew ho fmmxo||om }b }ko fu}kbx+|'!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
4/23
LBA]OA]\
Fh|}xfl} 6
6! Ga}xbmul}gba 68! Mbo|Xgnk}}bFyybga}@fcbxg}wMgxol}bx|Fe~fw|G`yewLba}xbe2 8
Eg|}bj]fheo|
]fheo6 \gnagjglfalobjZfxgbu|Eozoe|bjOvug}w\kfxokbemgan ?]fheo
8
Feeb}`oa}bj
\kfxo|
hw
}ko
Jgx|}
F`oxglfa
\oluxg}go|
Yz}
E}m
muxganCuew899:}bJohxufxw8969 ;
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
5/23
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
6/23
BYOXF]GBABJJMGLFY\GAGAMGF
FAMLBXYBXF]O
LBA]XBE
@OLKFAG\@\
D!\!Lkfefyf}gXfbfamHg|~fcg}Mkfx#TFh|}xfl}3^kgeo Gamgfkf|noaoxfeewhooajbeeb~ganfabyoambbxJMGybeglw%fjo~fxof|fxo |}gee
|uhcol}}blfy|baJMGfam"bx|yolgjglnbzoxa`oa}fyyxbzfe!Baobj}kocu|}gjglf}gba|jbx}ko|f`og|}ko
aoom}bxo}fgafmonxoobjlba}xbebzox}kobyoxf}gba|bj}kogazo|}oolb`yfago|gaGamgfakfam|!Ofxegox
}kg|wofx%}konbzoxa`oa}|yolgjgom}ko`o}kbmbebnwjbxlfeluef}ganmgxol}famgamgxol}jbxognaovug}wga
Gamgfa
lb`yfago|
ga
bxmox
}b
xo`bzo
f`hgnug}go|
ga
lfeluef}gan
}ko
o{}oa}
bj
JMG
ga
f
lb`yfaw!
Hf|om
ba o`ygxglfe ozgmoalo }kg|yfyox fxnuo| }kf}yoxloa}fno bj |kfxo| bxyxbybx}gba bj mgxol}bx| mbab}
aolo||fxgew xoyxo|oa} }ko o{}oa} bj lba}xbe fam`bxo mgxol} ga}oxzoa}gba ~buem ho xovugxom gj }ko
bhcol}gzo|bjg`yb|gan}kolfy|fxo}bhoflkgozom!P
6! Ga}xbmul}gba
Bzox }ko yf|} |ozoxfe wofx|% Gamgf kf| yxbnxo||gzoew eghoxfeg|om g}| jbxogna mgxol}
gazo|}`oa}+JMG'ybeglw!F|fxo|ue}% ga`b|}|ol}bx|%jbxognagazo|}bx|lfakbem699yox
loa} bj }ko ovug}w ga jgx`| xong|}oxom ga Gamgf! Xo|}xgl}gba| }kf} xo`fga ba jbxogna
b~aox|kgyfxog`yb|omga}~b~fw|3bao%jbxognagazo|}bx|fxoab}feeb~om}bgazo|}ga66
|ol}bx|6%~kgeo |b`ob}kox|%`b|}bj~kglkfxo ga }ko |oxzglo| |ol}bx|%fxo |uhcol}om }b
logegan|baJMGfam"bx|yolgjglnbzoxa`oa}fyyxbzfe!]kocu|}gjglf}gbajbx}ko|f`olbuem
zfxw moyoamgan uyba }ko |ol}bxhu} galeumo| ga}ox fegf }ko mo|gxo }b xo}fga f lox}fga
monxoo bj lba}xbe bzox }ko byoxf}gba| bj }ko gazo|}oo lb`yfago| ga Gamgfa kfam| fam
# D!\!Lkfefyf}gXfb+xfbIg|gm!bxn!ga'g|~g}k}koGa|}g}u}ojbx\}umgo|gaGamu|}xgfeMozoeby`oa}
+G\GM'%Ao~MoekgfamHg|~fcg}Mkfx+hg|~fcg}Ixg|!bxn!ga'g|~g}k}koXo|ofxlkfamGajbx`f}gba\w|}o`jbxMozoebyganLbua}xgo|+XG\'%Ao~Moekg
6 Fnxglue}uxo +o{loy} jebxglue}uxo% kbx}glue}uxo% mozoeby`oa} bj |oom|% fag`fe ku|hfamxw%
yg|lglue}uxo%fvuflue}uxofamlue}gzf}gbabjzono}fheo|fam`u|kxbb`|' xo}fge }xfmgan +o{loy}
|ganeohxfamyxbmul}xo}fgegan'%eb}}oxw%nf`heganfamho}}gan%lkg}juam%`u}ufehoaojg}jgafalgfe
lb`yfago|% }xfmgan ga }xfa|joxfheo mozoeby`oa} xgnk}|% xofe o|}f}o% `faujfl}uxgan bj lgnfx|%
lgnfxo}}o|%}bhfllbbx}bhfllb|uh|}g}u}o|%f}b`gloaoxnw%famxfge~fw}xfa|ybx}+b}kox}kfa`f||
xfygm }xfa|ybx}|w|}o`|'!\ooLba|begmf}omJMGYbeglw +Ojjol}gzoJxb`Bl}bhox6%8969'bj }ko
Moyfx}`oa} bj Gamu|}xgfe Ybeglw fam Yxb`b}gba% Nbz}! bj Gamgf% fzfgefheo f}
k}}y3""~~~!mgyy!agl!ga"JMGRLgxluefx"JMGRLgxluefxR98bj8969!ymj!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
7/23
8
yb||ghew }bngzo }g`o }b }komb`o|}gloa}xoyxoaoux|}bnfga|}xoan}k|bf| }b~g}k|}fam
lb`yo}g}gbajxb`jbxognalb`yfago|8!
]ko\}ooxganNxbuybaJbxognaMgxol} Gazo|}`oa} |o}uyhw }koYefaaganLb``g||gba
fmmxo||om }ko yb||gheo lba|gmoxf}gba| jbx g`yb|gan lfy| fam hfa| ba JMG |ulk f|
af}gbafe |oluxg}w% lue}uxo fam `omgf% af}uxfe `babybego|% `babybew yb~ox% af}uxfe
xo|buxlo|fam }xfa|g}gba lb|}|fam xolb``oamom xo`bzfebj`fawbj }ko xo|}xgl}gba|!=yoxloa}!Gabxmox}byxozoa}
hxoflk bj }ko logegan| hw jbxogna gazo|}bx| hw gazo|}gan }kxbunk b}kox lb`yfago|
galbxybxf}omgaGamgf~kglk}kowog}koxb~abxlba}xbe%}konbzoxa`oa}kf||yoe}bu}
}ko`o}kbmbebnwjbxlfeluef}ganmgxol}famgamgxol}jbxognaovug}wgaGamgfalb`yfago|!?
]kg|`o}kbmbebnwkf|hooaoefhbxf}om ga }koLba|begmf}omJMGYbeglw%8969 +LJY' }kf}
holf`oojjol}gzojxb`Fyxge6%8969!
Bjef}o%kb~ozox%}konbzoxa`oa}kf|gamglf}omg}|ga}oa}}bxoef{}kolfy|gafau`hoxbj
|ol}bx|% galeumgan mojoalo fam xo}fge }xfmo!: Ofxegox%mg|lu||gbakf| fe|b }fdoayeflo ga
lf|obj}kohxbfmlf|}gan|ol}bx!Fe|b%}koyxbyb|fe}bgalxof|o}koJMGeg`g}jxb`8:yox
loa}}b=7yoxloa}ga}koga|uxfalo|ol}bxg|yoamgan!Ngzoa}kf}}kogalxof|ogajbxogna
yfx}glgyf}gba g|ab~hoganyxbyb|om ga|oa|g}gzo|ol}bx|%fam gaxozox|febj }koybeglgo|
~koxoga }ko nbzoxa`oa} ~f| xoeul}fa} }b lomo lba}xbe }b jbxogna oa}g}go| jbx jofx bj
`fxngafeg|f}gbabj}koGamgfaoa}g}go|% g} g|g`yoxf}gzo}buamox|}fam}ko g`yeglf}gba|bj
g`yb|gan }kolfy|baJMG! Gabuxzgo~%lbxybxf}olba}xbe g|fykoab`oaba }kf}|oo`|
of|w}byoxlogzo%hu}lfa`fagjo|}ga|ozoxfemgjjoxoa}~fw|gag}|fl}ufeg|f}gba%~kglklfa
of|gew lfu|o f nfyho}~ooa o{yol}f}gba| fam o{yoxgoalo|!]kg|yfyox g| fa f}}o`y} }b
8 Jbxo{f`yeo%xo|}xgl}gba|fxo g`yb|omba }kooa}xwbj jbxogna jgx`| gamojoalo~g}kfzgo~ }b
|}xoan}koagan |oejxoegfalo ga mojoalo yxoyfxomao||! Jbx mo}fge| |oo Moyfx}`oa} bj Gamu|}xgfe
YbeglwfamYxb`b}gba%@gag|}xwbjLb``oxlo*Gamu|}xw+8969'%yfxfnxfyk
JbxognaMgxol}
Gazo|}`oa}%Funu|}8998!
= \ooFaao{6}b}koXHG@f|}oxLgxluefxbaJbxognaGazo|}`oa}gaGamgfjbxJMGLfy|famoa}xw
xbu}o|!? ]ko `o}kbmbebnw ~f| uazogeom ga Yxo|| Ab}o Ab 8 +8997 \oxgo|'% fzfgefheo f}
k}}y3""|gfmgyy!agl!ga"ybeglw"lkfano|"ya8R8997!ymj!: ]koxokf|hooao{}oxafemo`famfe|b}bxfg|o}kolfy|!\oojbxga|}falo%_\}bf|dGamgf}bxfg|o
JMGeg`g}gaGa|uxfalo%Mojoalo3F||g|}fa}\olxo}fxwbj\}f}o~fa}|\ol}bxfeLfy}b@bzo_y}b=7
yoxloa}%Olbab`gl]g`o|%89Abzo`hox8997!_D}of`}byu|kjbxof|wJMG%]ko]oeonxfyk%Cuew
8> 8969! Ga|uxfalo% hfadgan fam mojoalo ~oxo xoybx}om }b ho }kogx jblu|! \oo3
k}}y3""~~~!}oeonxfykgamgf!lb`"6699>8>"c|y"hu|gao||"|}bxwR68>
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
8/23
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
9/23
=
mgjjoxoa}gfe zb}gan xgnk}| fam |yolgfe xgnk}| oacbwomhw lox}fga |kfxokbemox| fjjol}gan
molg|gba`fdgan+~kglkgaleumo|oeol}gbabjmgxol}bx|'f}faaufenoaoxfe`oo}gan|~koa
g}|}f}o|3
Gafaw |ol}bx"fl}gzg}w%~koxoNbzoxa`oa}
fyyxbzfe
g|
xovugxom
jbx
jbxogna
gazo|}`oa}
fam ga lf|o| ~koxo }koxo fxo faw ga}ox|o fnxoo`oa}|ho}~ooa"f`ban|} |kfxo
kbemox|~kglkkfzofaojjol}ba}kofyybga}`oa}bj}koHbfxmbjMgxol}bx|bxba
}ko o{oxlg|o bj zb}gan xgnk}| bx bj lxof}gan zb}gan xgnk}| mg|yxbybx}gbaf}o }b
|kfxokbemganbxfaw galgmoa}fe`f}}ox }koxobj% |ulkfnxoo`oa}|~geekfzo }bho
gajbx`om}b}kofyyxbzganfu}kbxg}w!]kofyyxbzganfu}kbxg}w~geelba|gmox|ulk
ga}ox|ofnxoo`oa}|jbxmo}ox`gaganb~aox|kgyfamlba}xbe~koalba|gmoxgan}ko
lf|ojbxnxfa}ganfyyxbzfejbxjbxognagazo|}`oa}!+o`ykf|g|fmmom'
]ko `fcbx eg`g}f}gba bj }kg| fyyxbflk% }kbunk g} g| ho}}ox }kfa ebbdgan f} f |g`yeo`fcbxg}wgaovug}w|kfxo|%g|}kf}g}|}geexoego|ba`fcbxg}wga}kohbfxm!G}mbo|ab}fmmxo||
}ko |olbam fam `bxo lxg}glfe vuo|}gba bj kb~ f lb`yfaw|hbfxm% ~kglk g| }ko `fga
byoxf}gbafe hbmw% jual}gba|! Hbfxm| mo}ox`gao }ko ybeglw% |}xf}onw fam byoxf}gbafe
`f}}ox|!Koaloga`bxo~fw|}kfabao%}kohbfxm|xbeog|`bxomolg|gzo}kfa}kf}bj}ko
noaoxfehbmwbj|kfxokbemox|!
G}kf|
hooa
xolbnag|om
jbx
eban
}kf}
lbxybxf}o
lba}xbe
g|
ab}
fa
of|w
}kgan
}b
mojgao%
fam
}komgzgmgan egaoho}~ooa|b`o lba}xbefamab lba}xbe g|fxhg}xfxw!66Eonfeyxbzg|gba|
lfabaewyxbzgmo|b`ohxbfmyfxf`o}ox|!F|ab}omfhbzo%b~aox|kgybj`fcbxg}wovug}w
g| }fdoaf|f|ujjglgoa}lbamg}gbajbxuaf`hgnubu|lba}xbeholfu|ouamoxlb`yfaw ef~
`b|}molg|gba| }fdoa ganoaoxfe`oo}gan|famoeol}gbabjmgxol}bx|fxohf|omba|g`yeo
`fcbxg}w bj }ko |kfxo| xoyxo|oa}omhw }kb|o yfx}glgyf}gan ga }ko `oo}gan! Kb~ozox%
|yolgfe yxbzg|gba| lfa fe|bho|}b~ lba}xbe bj zfxwgan monxoo| ozoa }b }kb|o b~agan
`gabxg}w |kfxo|! +\oo ]fheo6 jbx }ko |gnagjglfalo bj mgjjoxoa} |kfxokbemgan eozoe|' Jbx
o{f`yeo% f `gag`u bj 8: yox loa} ~buem ab} baew ngzo }ko jbxogna gazo|}bx nxof}ox
hfxnfgaganyb~oxhu}uamox}koGamgfaLb`yfawEf~g}~buemfe|boafheo}kojbxogna|kfxokbemox }b ojjol}gzoew byyb|o |yolgfe xo|beu}gba| }ku| eg`g}gan }ko jxoomb bj }ko
`fcbxg}w }b lfxxw bu} fee }kogx yefa|! Jux}kox% }ko gazo|}bx| lfa ga|g|} ba |yolgfe xgnk}|
|kfxokbemox|hw Kgamu|}fa LblfLbef Hozoxfno| Yz} E}m g| |b`o~kf} mgjjoxoa}% ~o fxo ab}
xojoxxgan }b }ko |f`okoxomuo }b }koAbamg|leb|uxoFnxoo`oa} |yolgjgom ga }koLb`yfaw|
FbFmb~aebfmomjxb`}ko@gag|}xwbjLbxybxf}oFjjfgx|f|fYuheglMblu`oa}!66 Kw`ox+677
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
10/23
?
]fheo6
\gnagjglfalobjZfxgbu|Eozoe|bjOvug}w\kfxokbemgan
\kfxoga
Ovug}w+/'
\gnagjglfalo"G`yeglf}gba|
69
_|ufeew
}fdoa
f|
}ko
`gag`u`
|kfxo
xovugxom
}b
o{oxlg|o
lba}xbe"gajeuoalo!
Gmoa}gjglf}gbabjJMGxoef}gba|kgyg|hf|omba}kg|yoxloy}gba!_amox\ol}gba|fam
?/ hogan }ko `gag`u |kfxokbemgan xovugxom }b no} |yolgfe
xo|beu}gba|yf||omf}lb`yfawnoaoxfe`oo}gan|%}kb|olba}xbeegan8:/|kfxokbemgan
lfahebldfaw|yolgfexo|beu}gba% gj}kow|bmo|gxo!Fllbxmgan}blb`yfago|Hgee8997%
}kg|yoxloa}fnoxojeol}||gnagjglfa}gajeuoalo!
= ]kg| g| }ko uyyox eg`g} feeb~om ~koxo 699/ JMG g| ab} yox`g}}om! ]kg| g| }kolbua}oxyfx}bj8:/!Gamgfa|kfxokbemox|~g}k8:/|kfxokbemgan~geehogafyb|g}gba%
gj}kow|bmo|gxo%}bhebld|yolgfexo|beu}gba|!
699 ^kbeewb~aom!
\b`o
Mg|}bx}gan
Jfl}bx|
g! \yolgfe xgnk}| lfa lkfano }ko xoef}gba|kgy ga jfzbux bj `gabxg}w |kfxokbemox|
gxxo|yol}gzobj}koo{}oa}bj}kogxzb}ganxgnk}|!
g!Fab}kox`faaoxga~kglk}koyoxloa}fno|lfaeb|o}kogx|gnagjglfalog|}komoyebw`oa}
bjmgjjoxoa}gfezb}ganxgnk}|!
g! ]ko |g}uf}gba ~buem fe|b ho moyoamoa} uyba }ko mg|}xghu}gba bj xo`fgagan
|kfxokbemgan!]kg|g|`bxo|bgalf|objeg|}omlb`yfago|!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
11/23
:
~kglkngzo}ko`mg|yxbybx}gbaf}olba}xbebzoxfab}koxlb`yfawmg|yxbybx}gbaf}ohb}k
ga}ox`|bjzb}ganxgnk}|famhbfxmxoyxo|oa}f}gba!]kg|ykoab`oaba~f|bj}oa|ooaga
lf|o bj jbx`ox JOXF lb`yfago| f} }ko }g`o bj }kogx lb`yegfalo ~g}k }ko Fl}!68 Jbx f
|f`yeobj?:lb`yfago|%bj~kglk}koyxb|yol}u|o|~oxofzfgefheo%g}~f|jbuam}kf}
!!!ga=yox
loa}|kfxofamAo~WbxdEgjoGa}oxaf}gbafebj_\+AWEG'kf|}koxo`fgagan8:yoxloa}
|}fdo}ku|lbajbx`gan}b}koJMGlfyfyyeglfheo}b}ko ga|uxfalo|ol}bx!]koFx}gleo|bj
F||blgf}gba+FbF'bj@f{Egjo|}gyuef}o}kf}bu}bj}ko}b}fe69mgxol}bx|bj}kolb`yfaw%
@f{ Gamgf g| oa}g}eom }b fyybga} > mgxol}bx| }b }ko @f{ Egjo| Hbfxm%AWEG }~b +aba
xo}gxgan'mgxol}bx|fam}koxo`fgaganbao~geehojgeeomuyhw}ko@f{Egjo|LOB!Ba}ko
jflo bj g}% @f{ Gamgf kf| jfx efxnox au`hox bj mgxol}bx| ba @f{Egjo|hbfxm~kb fe|b
lba|}g}u}o`fcbxg}w!Hu}~koag}lb`o|}bjbx`ganvubxu`f}hbfxm`oo}gan|bj@f{Egjo
f}eof|}baomgxol}bxoflkab`gaf}omhw@f{GamgffamAWEG|kbuemhoyxo|oa}!Famjbx
}fdgan lox}fga molg|gba|hw }ko lb`yfaw fam faw bj g}| |uh|gmgfxgo| +oflk f Xoeozfa}
Lb`yfaw'%
!!! |kfee xovugxo yxgbx fyyxbzfehw f `fcbxg}w bj }kohbfxm bj mgxol}bx| bj }ko
Xoeozfa}lb`yfaw%~kglk`fcbxg}w`u|}galeumof}eof|}bao+6'mgxol}bxfyybga}om
hw@f{Gamgffambao+6'fyybga}omhwAWEG!!!+o`ykf|g|fmmom'6=
68 \oojbxga|}falo%Nbwfe+67>7'famNbwfe+67;8'!6
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
12/23
>
]ko|olbamg}gba|}ku|aueegjw}ko`fcbxg}woacbwomhw@f{Gamgfga}kohbfxmbj@f{Egjo
fam`fdoAWEGfa ovufeyfx}aox gamolg|gba`fdgan!]ko8:yox loa} lfyba jbxogna
ovug}wkf|}ku|eg}}eoxoeozfalofam@f{Egjoojjol}gzoewbyoxf}o|f|f?93?9cbga}zoa}uxo!
Flvug|g}gbabjfmmg}gbafeovug}whwAWEG}kxbunkgamgxol}`ofa|hwg}|oejg|ab}nbgan}b
lkfano}koyb|g}gbaf|jfxf|lba}xbebj@f{Egjog|lbaloxaom!
\g`gefxfamozoa`bxoga}oxo|}ganlf|og|}kf}bjHkfx}gF{fEgjoGa|uxfaloLbE}m+Hkfx}g
F[F' ga ~kglk F[F Gamgf Kbemgan|% @fuxg}gu| +F[F' kf| 88!888 yox loa} |}fdo fam
Hkfx}goa}g}go|=9yoxloa}famHkfx}g\YZ+Jgx|}F`oxglfa\oluxg}go|Yz}E}m'6?!>>;yox
loa}!Ga}kg|lf|o+]'kovubxu`jbx}ko}xfa|fl}gbabjhu|gao||f}fNoaoxfe@oo}gan|kfee
hojgzo@o`hox|yxo|oa}%bj~kb`bao|kfeehoF[F+muewxoyxo|oa}om'fam%jbx|beban
f| Hkfx}g kbem| ab} eo|| }kfa 68!? yox loa} bj }ko \kfxo|% bao |kfee ho Hkfx}g +muew
xoyxo|oa}om'!6:]koxofxo|g`gefxlefu|o|gaxo|yol}bjxoyxo|oa}f}gbaba}kohbfxmf|fe|b
kb~}ko|kfxokbemganbjHkfx}g\YZ|kbuemho}xfa|joxxom~koaozoxbjjglgfeJMGybeglwg|
`bmgjgom}bfeeb~kgnkoxjbxogna|kfxo!]koFbFbj}koHkfx}g\YZ|}f}o|}kf}
!!! ab bhegnf}gba bj }ko Lb`yfaw |kfee ho oa}oxom ga}b fam ab molg|gba bx
mo}ox`gaf}gba |kfeeho `fmo fam ab fl}gba |kfeeho }fdoahw }ko Hbfxm ~g}k
xo|yol} }b }ko Lb`yfaw bxCZLb +!!!' ga xo|yol} bj faw bj }ko `f}}ox| eg|}om ga
Fx}gleo6>8+
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
13/23
;
\YZLbbaHkfx}gF[F~geegaojjol}hoF[Fxoyxo|oa}f}gzo|!]ko79yoxloa}|kfxo|koem
hw }koHkfx}goa}g}go| ga }ko\YZfxo }ku|bjablba|ovuoalo! G} g|xoeozfa} }bab}o }kf}
F[F|oo`|}bkfzoyfgmkofzwyxo`gu jbxflvugxgan}ko|kfxo|bj}ko\YZ~kgeo}ko
Hkfx}g oa}g}go| bh}fgaom }ko |kfxo| f} }ko jflo zfeuo bj i69! Ho}~ooaCuew ?% 899: fam
Johxufxw8:%8969%F[Fyfgmi=9:!!7;lxbxo!+]fheo8'
]fheo8
Feeb}`oa}bj\kfxo|hw}koJgx|}F`oxglfa\oluxg}go|Yz}E}mmuxganCuew899:}bJohxufxw8969
Mf}objG||uo \kfxo|g||uom}bF[F \kfxo|g||uom}bHkfx}goa}g}go|
f}yfxzfeuobji69yox|kfxo
Ab! F}Yxo`gu
yox|kfxo
bj
i
Zfeuo+i' Ab! Zfeuo+i'
+6' +8' +%>>; ;!;68 6%6
@fw6=899; ::%::: 6>=9!96;=?9 66%::%::%>;9 :%99%999 :9%99%999
Fun9:8997 ::%::: =89:!>66 8;%66%66%8;9 :%99%999 :9%99%999
\oy
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
14/23
7
!>>;{9!690>>; gamgxol}ew }kxbunk }ko\YZ'fam }ku| lbajbx`| }b }kobjjglgfeJMG
ybeglwgaxo|yol}bj}koga|uxfalo|ol}bx%}koojjol}gzo|kfxobjF[F~bxd|bu}}b:9yox
loa}+88!888mgxol}ewfam!>>;}kxbunk}ko\YZLb'%jfxgao{lo||bj}koeg`g}oazg|fnom
hw}koybeglw`fdox|!]koo`ykf|g|baflvugxganfkgnkox|kfxojbx`feewga}koCZLbhw
F[Fg|jux}koxozgmoa}jxb`}kojbeeb~gan3
Ab}~g}k|}famgan faw}kgan }b }ko lba}xfxw lba}fgaom ga }ko|oFx}gleo|% gj fam ba
oflkbllf|gba}kf}}koef~|bxxonuef}gba|bjGamgffxolkfanom|b}kf}F[Fg|yox`g}}om
}bkbem%mgxol}ewbx gamgxol}ew%`bxo }kfa8:yoxloa}bj }ko\kfxo|%F[F|kfeekfzo }ko
xgnk}}bgalxof|og}|kbemganbj\kfxo|og}koxhwflvugxganfawbxfeebj}koAbaMg|yb|fe
\kfxo|jxb`Hkfx}g\YZbxhw|uh|lxghganjbxao~\kfxo|!!!!+o`ykf|g|fmmom'
Fagao|lfyfheolbaleu|gba%}koxojbxo%g|}kf}}ko\YZkf|hooalxof}om}bno}fxbuam}ko
o{g|}ganxonuef}gba|famF[F~f|ab}yxoyfxom}b|o}}eojbx}ko8:yoxloa}|kfxo!
Ga}kolf|obj]f}fFGNNoaoxfeGa|uxfaloLb!E}mfe|b~ojbuam}kf}}ko8:yoxloa}JMG
eg`g} kf| ab byoxf}gbafe |gnagjglfalo f| }ko fx}gleo| ngzo }ko jbxogna gazo|}bx |yolgfe
xgnk}|! ^o mgm fllo|| }ko FbF| bj Hgxef \ua Egjo Ga|uxfalo Lb E}m fam Hfcfc Feegfas
Noaoxfe Ga|uxfalo Lb E}m fe|b! Kb~ozox% }ko|o ab}hogan }ko ef}o|}% ~o fxo ab} ga f
yb|g}gba}bo{yxo||fawbygagbaf|jfxf|}kolba}xbe`olkfag| ~xg}}oaga}b}koFbF|hw
}kolbeefhbxf}ganyfx}go|!
G} g| ozgmoa} }kf} }ko LJY mbo| ab} fmmxo|| }ko g||uo bj jual}gbagan bj }ko lbxybxf}o
hbfxm| gacbga} zoa}uxo|! F| }ko o{yoxgoalo bj mgeu}gba bj jbxogna ovug}w uamox JOXF
|unno|}|%u|obj|yolgfexgnk}|famzo}byb~ox|kf|hooafzoxwbemyxfl}glo!Ga}oxo|}ganew%
|uh|ovuoa}fao~|xoybx}ba}ko|yolgfexgnk}|oacbwomhwjbxognagazo|}bx|gaga|uxfalo
cbga} zoa}uxo|% hf|om ba bux banbgan |}umw bj JMG6;% ga }ko lba}o{} bj jbx`uef}gan
nugmoegao|jbxga|uxfaloGYB|g}~f|xoybx}om}kf}!!!abcbga}zoa}uxo~geehofheo}bnb
yuhegl~g}kbu} }ko jbxognayfx}aox eb|gan g}|zo}byb~ox ga }kocbga}zoa}uxo!67Bao g|
ab}%kb~ozox%leofxbjkb~|ulkxgnk}|ho}xof}omgalf|objuaeg|}omCZ|!\olbamew%~gee
}ko Gamgfa yfx}aox ho feeb~om }b |oee kg| oa}gxo |}fdo ga }ko byoa `fxdo} fj}ox }ko
lb`yfawg|eg|}omfam}koebldgayoxgbm%gjfaw%g|bzoxeofzgan}kojbxognagazo|}bxf|}ko
|ganeoefxno|}gazo|}bxga}kolb`yfaw2Gafawlf|o%g}g||uxyxg|gan~kw}koLJY`g||om
}kg|g`ybx}fa}fam~oeedab~af|yol}bjlbxybxf}olba}xbe!
6;Cbo L @f}ko~% Jbxogna jgx`| lfee }ko |kb}| ga |ozoxfe ga|uxfaloCZ|%Hu|gao|| \}famfxm% 8;
\oy}o`hox8969!67 k}}y3""~~~!egjoga|lbualge!bxn"`omgfloa}xo"ef}o|}ao~|"?86|}fdokbemox|bjgybhbuamlb|
`u|}|oee|}fdoovufeew!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
15/23
69
=! MbZo}bXgnk}|bj @gabxg}w\kfxokbemox|F`bua}}b
Lba}xbe2
]kf}}koga}oxyxo}f}gbabjzo}bxgnk}|gahbfxm`oo}gan|kf|holb`oflba}oa}gbu|g||uog|
ozgmoa} jxb` }ko jfl} }kf} }ko g||uo g| luxxoa}ew oanfngan }ko f}}oa}gba bj }ko kgnko|}cumglgfe hbmw bj }ko lbua}xw! ]ko lf|o lbaloxa| }ko zo}b yb~ox| koem hw `gabxg}w
|kfxokbemox|af`oew\uhkdf`Zoa}uxo| +G'Yz}E}m +\uhkdf`' ga@\DYxbcol} +Gamgf'
E}m! ]ko \oluxg}go| fam O{lkfano Hbfxm bj Gamgf +\OHG' kfm ofxegox koem }kf} |galo
\uhkdf` kf| }ko xgnk} }b fyybga} f ab`gaoo ba }ko Hbfxm bj @\DY fam }kf} }ko
fjjgx`f}gzo zb}o bj }ko \uhkdf`| ab`gaoo |kfeeho xovugxom ga mofegan ~g}k f efxno
au`hoxfamzfxgo}wbj`f}}ox|f|ebanf|\uhkdf`kbem|f}eof|}69yoxloa}bj}ko|kfxo
lfyg}febj@\DY%g}f`bua}|}blba}xbebj\uhkdf`bzox@\DY!^koa\uhkdf`~oa}jbx
fyyofefnfga|}}kg|%}ko\oluxg}go|Fyyoeef}o]xghuafe+\F]'bh|oxzom}kf}3
\galo}kofyyoeefa}+\uhkdf`'kf|}koyb~ox}bab`gaf}obaewbaomgxol}bx%}kf}
ab`gaoo lfa%hwab|}xo}lkbj xof|bagan%o{oxlg|olba}xbebzox }kofjjfgx|bj }ko
}fxno}lb`yfawbxlba}xbeg}|hbfxmbjmgxol}bx|!]kf}|ganeoab`gaoo~buemhoga
f`glxb|lbygl`gabxg}wfamkokf|abzo}byb~ox|!G}g|}kofm`g}}omlf|obj}ko
yfx}go| }kf} }ko }fxno} lb`yfaw g| f Hbfxm `fafnom lb`yfaw fam }ko bzoxfee
lba}xbebj}kf}lb`yfawzo|}|~g}k}kohbfxmbjmgxol}bx|!
!!!
Kfzganlfxojueewnbao}kxbunkoflkfamozoxw|uhlefu|objlefu|o7+~kglkeg|}|
}ko`f}}ox|
}b
ho
molgmom
~g}k
}ko
ab`gaoo
mgxol}bx|
lba|oa}'%
~o
fxo
bj
}ko
zgo~
}kf}g}`ofa|~kf}g}|fw|!]kozfxgbu||uhlefu|o|fxo`ofa}baew}byxb}ol}}ko
ga}oxo|}bj }koflvugxox +fyyoeefa}'fam }ko gazo|}`oa}`fmohw g}! !!!]ko eg|}bj
`f}}ox| yxbzgmom ga lefu|o| 7+f' }b 7+b' fxo ab} ga }ko af}uxo bj mfw }b mfw
byoxf}gbafelba}xbebzox}kohu|gao||bj}ko}fxno}lb`yfaw!\bfe|b%}kowfxoab}
ga }ko af}uxobj lba}xbe bzox og}kox }ko `fafno`oa} bxybeglw molg|gba|bj }ko
}fxno} lb`yfaw! ]ko|o yxbzg|gba| `oxoew oafheo }ko flvugxox }b byyb|o f
yxbyb|fefamab}lfxxwfawyxbyb|febag}|hgmmgan!89
Ab}~g}k|}famgan \F]| yb|g}gba g} g| ozgmoa} }kf} ga fee |}xf}ongl `f}}ox|% }ko gazo|}oo
lb`yfaw|yxb`b}ox|kfam| fxo }gom!]kow lfaab}molgmoba fhu|gao||yefaabx lfa
}kow fyybga} ozoa dow bjjglgfe| bj }ko lb`yfaw! Bao ga}oxyxo}f}gba lbuemho }kf} }ko
gazo|}oo lb`yfaw|hbfxm kf| baew }b oambx|o ~kf} }ko gazo|}gan lb`yfaw ~g|ko|!
B}kox~g|o}koxo~geehof|}feo`f}o!^kgeo}ko\F]mgmab}moo`}koyb~ox|}bhozo}b
yb~ox|%}koxog|ozoxwyb||ghgeg}wbj}kozo}byb~ox|hoganga}oxyxo}omf|f`bua}gan}b
89 Hojbxo }ko\oluxg}go|Fyyoeef}o]xghuafe%FyyofeAb! ;bj 8997!Mf}objMolg|gba3 6?!96!8969
fzfgefheof}k}}y3""~~~!|ohg!nbz!ga"|f}bxmox|"|uhkdf`zoa}uxo|!ymj!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
16/23
66
|b`o|bx}bjlba}xbega}kg|xonfxm!G}g|xoeozfa}}bxojoxga}kg|lba}o{}}b}koOuxbyofa
Lb``g||gba|lb`yo}g}gbaybeglw~kglk|}f}o|}kf}3
Cbga} lba}xbe o{g|}| ~koxo }~b bx `bxo uamox}fdgan| bx yox|ba| kfzo }ko
yb||ghgeg}w bj o{oxlg|gan molg|gzo gajeuoalo bzox fab}kox uamox}fdgan! Molg|gzogajeuoaloga}kg||oa|oabx`feew`ofa|}koyb~ox}bhebldfl}gba|~kglkmo}ox`gao}ko
|}xf}ongllb``oxlgfehokfzgbuxbjfauamox}fdgan!_aegdo|beolba}xbe%~kglklbajox|
}koyb~oxuybaf|yolgjgl|kfxokbemox}bmo}ox`gao}ko|}xf}onglmolg|gba| gafa
uamox}fdgan%cbga}lba}xbe g|lkfxfl}oxgsomhw }koyb||ghgeg}wbjfmofmebld|g}uf}gba
xo|ue}gan jxb` }ko yb~ox bj }~b bx `bxo yfxoa} lb`yfago| }b xocol} yxbyb|om
|}xf}onglmolg|gba|!G}jbeeb~|%}koxojbxo%}kf}}ko|o|kfxokbemox|`u|}xoflkflb``ba
uamox|}famgangamo}ox`gagan}kolb``oxlgfeybeglwbj}kocbga}zoa}uxo+o`ykf|g|
fmmom'!86
ZfaHfoe*Hoeeg|%fHxu||oe|hf|omeofmganef~jgx`lbalux|hw|fwgan}kf}
Noaoxfeew% ~koxo }ko |uyybx} bj }ko `gabxg}w |kfxokbemox g| aoomom }b `fdo
molg|gba| lbaloxagan }ko uamox}fdgan| hu|gao|| yefa fam faaufe humno} fam }b
fyybga}`fafno`oa}%|ulkf`gabxg}w|kfxokbemox~geeho lba|gmoxom }bcbga}ew
lba}xbe }ko uamox}fdgan% xonfxmeo|| bj }ko jfl} }kf} g} `fwho |gnagjglfa}ew eo||
xoyxo|oa}omba}kohbfxm}kfa}ko`fcbxg}w|kfxokbemoxfam`fwkfzoabfhgeg}w
}bgajeuoalob}koxeo||g`ybx}fa}molg|gba|bj}kouamox}fdgan!88
G}~buemfe|bhoxoeozfa}}bxojox}b}ko\OHG]fdobzoxXonuef}gba|Fmzg|bxwLb``g}}oo
~kglkab}om}kf}
!!!ngzoa}kolf|o|yolgjglaf}uxobjlba}xbef|flbaloy}%}koLb``g}}oomolgmom
}b xojxfga jxb` |}gyuef}gan ~ko}kox }ko yb~ox }b |fw ab ~buem lba|}g}u}o
lba}xbe jbx yuxyb|o| bj }ko ]fdobzox Xonuef}gba|! ^ko}kox f yox|ba kf|
flvugxom lba}xbe hw zgx}uo bj fjjgx`f}gzo xgnk}| ~buem }koxojbxo kfzo }b ho
mg|loxaomjxb`}kojfl}|famlgxlu`|}falo||uxxbuamganoflklf|o!
]koLb``g}}oo|xolb``oamf}gba}kf}
86 Ybga}67bj }koOuxbyoaLb``g||gbaAb}globa }koLbaloy}bjLbaloa}xf}gbauamoxLbualge
Xonuef}gba+OOL'Ab=9:=";7ba}kolba}xbebjlbaloa}xf}gba|ho}~ooauamox}fdgan|fzfgefheof}
k}}y3""ouxeo{!ouxbyf!ou"Eo{_xg\oxz"Eo{_xg\oxz!mb2uxg0LOEO[3
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
17/23
68
!!! }ko mojgag}gba bj lba}xbe ho `bmgjgom }b galeumo fhgeg}w ga fmmg}gba }b
xgnk} }b fyybga} `fcbxg}w bj }ko mgxol}bx| bx }b lba}xbe }ko `fafno`oa} bx
ybeglwmolg|gba|~buemlba|}g}u}olba}xbe+|gl'!8= yox loa} ga lf|o bj
}oeolb``uaglf}gba|% }ko`|oezo|! Ga}oxo|}ganew%|b`obj }ko Gamgfayfx}aox|bj }ko efxno
}oeolb` lb`yfago| fxo `ue}gaf}gbafe ga af}uxo fam g} ~buemho mgjjglue} }b zg|ufeg|o
~koxo}kogxga}oxo|}|egofam~koxombo|lba}xbeego!
?! Aoomjbx Lefxg}wgaBhcol}gzo|
]kg|hxgan| u| }b }ko juamf`oa}fe vuo|}gba! ^kf} g| }ko bhcol}gzo bj feeb~gan JMG ga
|oa|g}gzofxof|2G|g}}bf}}xfl}jbxognalfyg}fefam}olkabebnw|b}kf}}ko|ol}bx|~buem
nxb~jf|}famojjglgoa}ew2Gj}kg|g|}kolf|o%}koa|ol}bxfeeg`g}|baJMGlbuembhzgbu|ewfl}f|`fcbxmo}oxxoa}jbxjbxognagazo|}bx|!]ko|olbamg|fhbu}}kog`yb|g}gbabj|ol}bxfe
lfy|! G| g} }b koey xo}fga lba}xbe ga }ko kfam| bj Gamgfa| |b }kf} af}gbafe ga}oxo|}| fam
|oa|g}gzg}go| lbuem ho ~oee yxb}ol}om2 G| g} }b oafheo mb`o|}gl oa}xoyxoaoux| nfga
|}xoan}k2Bx%g|g}}byxozoa}kgnkoxmonxoobjjbxognab~aox|kgyyox|ofam}ku|yxozoa}
efxnobu}jeb~|ga}kojbx`bjmgzgmoam|2Gj}koef}}oxfebaog|}kog||uo%}koxog|abebnglga
feeb~ganJMGga}ko|ofxof|ga}kojgx|}yeflo!F}}xfl}ganefxnoxzbeu`o|bjJMGlfaab}f}
feeho f lba|gmoxf}gba jbx byoagan uy |ulk |ol}bx|!8= \galo xo}fgagan |b`o lba}xbe ga
Gamgfakfam| fyyofx| }bho }ko`fga bhcol}gzo% }ko jbeeb~ganybga}|`fwho gabxmox!
Ngzoa }ko jfl} }kf} }koxo g|abo{yeglg}xo|}xgl}gbaba}koo{}oa}bjjbxognalba}xbef} }ko
oa}xwybga}~koaozoxoa}xw}kxbunk}kofu}b`f}glxbu}og|feeb~om%f|lb`yeo}oxoegfalo
g| yeflom ba yoxloa}fno |kfxo|% }ko |uh|ovuoa} ojjbx} f} eg`g}gan lba}xbe }kxbunk
8
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
18/23
6=yoxloa}jxb`8:
yoxloa}f|kgnkoxJMG eg`g}~buemfe|byxbzgmof|gnagjglfa} galoa}gzo jbx }xfa|joxbj
dab~kb~"}olkabebnw }b}kolbua}xw!8?Bhzgbu|ew% ga|ulkf|g}uf}gbabaewf|}xganoa}
bhegnf}gba% gj f} fee% lfa yxb}ol} af}gbafe ga}oxo|}% o|yolgfeewholfu|o }ko Gamgfa yfx}w
lfaab}kfzo`fcbxg}wba}kohbfxm%ko~buemfe|bab}kfzo}kolfyflg}w}byxozoa}`b|}
molg|gba|f}}kofaaufe`oo}gan|!Fe}oxaf}gzoew%}konbzoxa`oa}|kbuem}kgadbjkbemgan
nbemoa|kfxo|ga|ulkzoa}uxo|!
8? MGYY+8969'%y!>!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
19/23
6=
:! \u``gan _y
]ko g||uobj gamgxol}lba}xbelf`o ga}b jblu|holfu|obj }koxo|}xgl}gbaba }koo{}oa}bj
jbxognaovug}w g`yb|om jbxlox}fga |ol}bx|!]koLba|begmf}omJMGYbeglwbj8969yeflo|
o`ykf|g|ba
`fcbxg}w
b~aox|kgy
fam
xgnk}
}b
fyybga}
`fcbxg}w
mgxol}bx|
jbx
mojgagan
f
mb`o|}gllb`yfaw!]koxog|ozgmoalo}b|kb~}kf}}ko|ol}bxfelfy|%gj}ko|ofxofg`omf}
xo|}xgl}gan }ko o{}oa} bj lba}xbe wgoemomhw jbxogna gazo|}bx| f| f `ofa| bj yxb}ol}gan
af}gbafe ga}oxo|}"bhcol}gzo|% lfa ho mojof}om ga yxfl}glo }kxbunk |kfxokbemox
fnxoo`oa}|"xgnk}|~xg}}oaga}bFbFf|kf|hooa|ooagalf|obj}koga|uxfalo|ol}bx!G}g|
fa fldab~eomnom jfl} }kf} xoef}gzo |}xoan}k| bj }ko yfx}aox| mo}ox`gao| }ko o{}oa} bj
lba}xbegacbga}zoa}uxo|fam}komb`gafa}yfx}aoxkf|`fawfzoauo|}bg`yb|okg|~gee!
Ozoa gjfjbxognaoa}g}wlfaab}b~af`fcbxg}wbjfcbga}zoa}uxo% g}`fwhofheo }b
eonfeewbh}fga
byoxf}gbafe
lba}xbe
}kxbunk
b}kox
`ofa|!
Bao
`fw
|uxxbuam
}ko
cbga}
zoa}uxo~g}klba}xfl}ufebhegnf}gba|}b}kojbxognazoa}uxox!Jbxo{f`yeo%gj}kocbga}
zoa}uxo g| }b f||o`heo lb`ybaoa}| `faujfl}uxom ga }ko _ag}om \}f}o|% }ko _!\!
gazo|}bxxo}fga||gnagjglfa}lba}xbebzox}kocbga}zoa}uxoxonfxmeo||bjkb~`faw|kfxo|}ko
gazo|}bx b~a| bx kb~`faw mgxol}bx| g} lfa af`o }b }ko hbfxmholfu|o g} lba}xbe| }ko
|uyyewbjlb`ybaoa}|!\g`gefxew%f_!\!gazo|}bxlfao{oxlg|olba}xbe}kxbunk|uyyew
lba}xfl}|%`fxdo}ganfnxoo`oa}|%`fafno`oa} lba}xfl}|% famzo}byb~ox ga }kocbga}
zoa}uxofnxoo`oa}|!+o`ykf|g|fmmom'8:
Ga
ybeglw
gamulom
CZ|%
}ko
jbxogna
yfx}aox
g|
`bxo
egdoew
}b
moyebw
fee
yb||gheo
`ofa|
}b
xua}kooa}oxyxg|of|gjg}~f|f~kbeewb~aombaohwxomulgan}koeblfebao}bf|eooygan
yfx}aox!Ozoanbganhw}koOuxbyofaLb``g||gba| ga}oxyxo}f}gbabj}koxgnk}||oluxom
hw`gabxg}w|kfxokbemox| }kxbunkFbFbx |kfxokbemoxfnxoo`oa}| }ko |g}uf}gba lfaf}
ho|}hocbga} lba}xbefamf}~bx|}ho |beo lba}xbehw }ko jbxogna`gabxg}w |kfxokbemox|
ngzoa }ko moyoamoalo bj mb`o|}gl yfx}aox|! Ngzoa |ulk f |loafxgb% }ko `bag}bxgan bj
gamgxol} JMG oazg|fnomhw }ko LJY% ~buem kfxmew `fdo f mgjjoxoalo }b }ko o{}oa} bj
lba}xbeoacbwomhw}kojbxognagazo|}bx!
F}}ko
b}kox
o{}xo`o%
~koa
jbxogna
ovug}w
uy
}b
>=
yox
loa}
g|
feeb~om
lba|gmoxfheo
lba}xbekf|fexofmwhooawgoemom!Ngzoa}komoyoamoalobj eblfeyfx}aoxba }kojbxogna
yfx}aox jbx lxg}glfe gayu}|% g} g|f`bb}ybga} }b~kf} o{}oa} }ko jbx`ox~geehofheo }b
gajeuoalo}kozoa}uxo|byoxf}gbahw}fdganfmzfa}fnobj}ko8:yoxloa}|kfxokbemgan!Ga
}kofh|oalobjo{yxo||lbamg}gba|}kf}}ko8:yoxloa}|kbuemhokoemhwf|ganeoGamgfa
oa}g}wbxoa}g}go|kfzganhgamganlb``baga}oxo|}|ozoa}kg|o{yol}omyxb}ol}gba~buem
8: \lkfjjox%o}!fe+6777'%y!?;6!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
20/23
6?
yxbzogeeu|bxw!8>]kg|g|gxxo|yol}gzobj}kojfl}~ko}kox}koeblfeyfx}aox%o|yolgfeewgjko
kf||uh|}fa}gfega}oxaf}gbafehu|gao||o|%~buemngzoyxgbxg}w}baf}gbafega}oxo|}|!Ngzoa
}ko`faaox ga~kglkjuam|fxohoganxfg|omfamnxbuybyoxf}gba|fxo+yxbyb|om}bho'
hoganbxnfag|omhw|b`oGamgfahu|gao||nxbuy|%hu}jbx}kogxbxgngafeaf}gbafeg}w%}koxo
g|ab}kgan}b|unno|}}kf}af}gbafega}oxo|}lbuemho`bxog`ybx}fa}jbx}ko`}kfa}kogx
b~ayox|bafehu|gao||ga}oxo|}|!
G} g|ozgmoa} }kf} Gamgfkf|ab} eofxa}`ulk jxb`koxb~aJOXFmgeu}gbao{yoxgoalof|
fe|bjxb`}kobzox~koe`ganga}oxaf}gbafeozgmoalo!F|ebanf|jbxognagazo|}`oa}uy}b
f lox}fga eozoe g| feeb~om uamox }ko fu}b`f}gl xbu}o% }ko jbxogna gazo|}bx lfa by} jbx
hgamgan lefu|o| ~kglk lfa ngzo kg` fh|beu}o lba}xbe! G} mbo| ab} `f}}ox ~ko}kox }ko
gamgxol} gazo|}`oa} xbu}o ~kglk ko ~g|ko| }b o{yebg} }b galxof|o lba}xbe"|kfxokbemgan
fam~kglk }konbzoxa`oa}fg`| }b`bag}bxkf||g`gefxlefu|o|bxab}!Faw|lxu}gawf}
}ko |olbam eozoe }ku|holb`o| xomuamfa} f| jfx f| lba}xbehw }ko jbxogna gazo|}bx g|
lbaloxaom!Lba}xbe g| }kolxu{bj }ko`f}}oxfam g}lfaab}ho`of|uxomhwyoxloa}fno|
egdo8:bx=7famyxbybx}gbabjmgxol}bx|ga}kohbfxm!]ko`gag`u`}kf}|kbuemhombao
g|}bmg|feeb~zo}byb~ox|%~g}kmxf~fu}b`f}glxbu}ojflgeg}wjbx|ulk|ol}bx|famjbeeb~
flf|ohwlf|ofyyxbflk!]konbzoxa`oa}|kbuemfe|blba|gmoxkbemgannbemoa|kfxo|ga
feelb`yfago|byoxf}ganga|ol}bx|lba|gmoxomkgnkew|oa|g}gzojxb`af}gbafe|oluxg}wfam
yuhegl kofe}k ybga} bj zgo~! Hojbxo yxbloomgan jux}kox ~g}k }ko xonuef}gba bj gamgxol}
jbxognaovug}w%}koxog|bhzgbu|ewfaoomjbx}konbzoxa`oa}}b|yolgjw}kobhcol}gzo|ga
yeflganlfy|gaoflk|ol}bxfamfe|b}b|}umwkb~}koyxo|oa}lfy|fxo~bxdgangayxfl}glo
f}fee|}fno|!]koLJY|kbuemoefhbxf}oba}kg|gag}|ao{}xozg|gba!
8> ]ko ab~mg|hfamom ]f}f ]g`doa cbga} zoa}uxo mo`ba|}xf}o| kb~ ]AL| nufxm }kogx
}olkabebngo| fam kb~ ozoa f efxno kbu|o egdo }ko ]f}f| kfm }b fllomo }b }ko }ox`| |o}hw
]g`doa!Jbx}ko`fgalefu|o|bj}kofnxoo`oa}%|ooLkfamxf\kodkfx+6778'%y!???>!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
21/23
6:
Xojoxoalo|
Mkfx%Hg|~fcg} +67;;'%\}f}oXonuef}gbabjJbxognaYxgzf}oLfyg}fe ga Gamgf%Lbxybxf}o
\}umgo|Nxbuy^bxdganYfyoxfzfgefheof}k}}y3""g|gm!bxn!ga"ymj"|}f}xon!YMJ!
Moyfx}`oa} bj Gamu|}xgfe Ybeglw fam Yxb`b}gba +MGYY'% @gag|}xw bj Lb``oxlo *Gamu|}xw +8969'% Mg|lu||gba Yfyox3 Jbxogna Mgxol} Gazo|}`oa} +JMG' ga Mojoalo
\ol}bx% fzfgefheo f}
k}}y3""mgyy!agl!ga"Mg|lu||gbaYfyox|"Mg|lu||gbaYfyox|R6>@fw8969!ymj!
Nbwfe \!D! +67>7'% G`yfl} bj Jbxogna \uh|gmgfxgo| ba Gamgf|Hfefalo bj Yfw`oa}|% f
xoybx} |uh`g}}om }b }ko _A O\LFY% Hfandbd% Gamgfa Ga|}g}u}o bj Yuhegl
Fm`gag|}xf}gba%Ao~Moekg!
Nbwfe% \!D! +67;8'% ]ko Ao~ Ga}oxaf}gbafe Olbab`gl Bxmox fam ]xfa|af}gbafe
Lbxybxf}gba| r%Lbxybxf}o\}umgo|Nxbuy^bxdganYfyox!
Nukf ]kfdux}kf%
Yfxfacbw +899?'%Kb~ lbdo lbbd| g}| hbbd|% \oy}o`hox 9
k}}y3""~~~!}okoedf!lb`"|}bxwR`fga6=!f|y2jgeoaf`o0}|979
Funu|}!Lkfgx`fa3A!D!\gank!
\lkfjjoxXglkfxm%HozoxeowOfxeofamJgeghox}bFnu|}g+6777'%Ga}oxaf}gbafeHu|gao||Ef~fam
G}|Oazgxba`oa}%=}kOmg}gba%^o|}Omulf}gbafeYuheg|kganLb%Lgalgaaf}g!
\oluxg}go|famO{lkfanoHbfxmbjGamgf+8969'%Xoybx}bj}ko]fdobzoxXonuef}gba|Fmzg|bxw
Lb``g}}oo%Cuew67%y!
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
22/23
6>
Eg|} bj G\GM ^bxdganYfyox|
^Y8969"69 GamgfaLfyg}feg|`3FLf|o]kf}Mbo|a}Jg}2%\uxfcg}@fsu`mfx!^Y8969"97 HgnHu|gao||famOlbab`glAf}gbafeg|`gaGamgf%\uxfcg}@fsu`mfx^Y8969"9; Fegnagan ~g}k hb}k }ko \bzgo} _agba fam ~g}k }ko Ykfx`flou}glfe
]xfa|af}gbafe|3 Mgeo``f| f}}oamfa} ba gag}gf}gan Mxun Yxbmul}gba ga Gamgf%
Af|gx]wfhcg!
^Y8969"9> ]koFxmubu|Xbu}o }boa|uxgan|b`o@gag`u`Yuhegl\kfxokbemgan gaEg|}omLb`yfago|%D!\!Lkfefyf}gXfb!
^Y8969"9: @fafnganJgafalogaO`oxnganOlbab`go|3]koLf|objGamgf%\uafamf\oa!^Y8969"9? \blgfe\lgoaloXo|ofxlkgaNebhfeg|ganGamgf3Kg|}bxglfeMozoeby`oa}famXoloa}
]xoam|%]!\!Yfybef!
^Y8969"9=
Yxgzf}oGamu|}xw
fam
}ko
\olbam
Jgzo
Wofx
Yefa3
]ko
@uamkxf
Oyg|bmo
f|
o{o`yefxbjLfyg}feg|}@wbygf%Af|gx]wfhcg!
^Y8969"9
Gazo|}`oa}
fam
Nxb~}k
ga
Gamgf
uamox
Eghoxfegsf}gba3
F|w``o}xgo|
fam
Ga|}fhgeg}go|%\uxfcg}@fsu`mfx!
^Y899;"9: @omgf }ko Dow Mxgzox bj Lba|u`oxg|`3 @flxb@glxb Egadfno fam YbeglwMg`oa|gbaFLf|o\}umwbjJ@Xfmgb%Fhkgef|kfDu`fxg!
^Y899;"9? \}xul}uxfe Lkfano ga O`yebw`oa} ga Gamgf |galo 67;9|3 Kb~ Eo~g|gfa g| g}2%\f}wfdgXbw!
^Y899;"9= LxbawLfyg}feg| famLba}o`ybxfxwGamgfGGLxbawLfyg}feg|`famGamgf3HojbxofamFj}oxEghoxfegsf}gba%\uxfcg}@fsu`mfx!
# FexofmwYuheg|kom!@b|}bj}ko~bxdganyfyox|fxomb~aebfmfheojxb`}koga|}g}u}o|~oh|g}o3k}}y3""g|gmoz!agl!ga"bxk}}y3""g|gm!bxn!ga"
-
8/7/2019 Operation of FDI Caps in India and Corporate Control Mechanisms
23/23
Ga|}g}u}o jbx \}umgo| ga Gamu|}xgfe Mozoeby`oa}=% Ga|}g}u}gbafe Fxof% Zf|fa} Duac% Ao~ Moekg - 669 9>9% Gamgf
Ykbao3 $76 66 8:>: 6:994 Jf{3 $76 66 8:>: 6:? Gamgfa \blgfe \lgoalo
Cbuxafe| +BEG' fam 6? mfgew Oaneg|k Ao~|yfyox|! @bxo }kfa bao geegba |lfaaom g`fno| bj Yxo||
Legyygan| ba mgzox|o |blgfe |lgoalo |uhcol}| fxo fzfgefheo baegao }b |lkbefx| fam xo|ofxlkox|!
]ko|o mf}fhf|o| kfzo hooa ~gmoew fllefg`om f| zfeufheo |buxlo| bj gajbx`f}gba jbx xo|ofxlkox|
|}umwgan Gamgf| |blgb-olbab`gl mozoeby`oa}!
G\GM