Centre exploring move to ease foreign investment norms

Policymakers looking at option of foreign investments through mix of equity and debt

The Centre is considering expanded measures to allow greater flexibility for strategic foreign investors to buy stakes in local companies after offshore investment slumped to a five-year low, three sources with knowledge of the matter said.

Policymakers are looking at the option of foreign investments through a mix of equity and debt, which aren't permitted currently, the sources said, noting that a final decision is still pending.

Opening the door to such offshore investments would mark a further liberalisation of the nation's capital market and foreign capital flows, which are subject to numerous restrictions as the Indian currency is not fully convertible.