The Reserve Bank of India has proposed relaxation to the rules on Call and Put Options. According to sources, in a letter to the finance ministry, RBI has asked the government for downside protection to foreign investors upon their exit- the move comes after Tata Sons moved the central bank in the DoCoMo matter.
Romal Shetty, ED and National Head, KPMG said that if norms are in place, it will ease entry of foreign flows in India. He believes global telecom companies are looking to enter India and there must be a safeguard to protect the Indian company’s interest in industry. Adding to the discussion, Vivek Kathpalia of Nishith Desai Associates’ welcomes RBI recommendations on downside protection for foreign direct investment exits. According to him, the downside protection is very important for the realty sector.