New Delhi: The government on Tuesday said it has approved Rs 225 crore foreign investment in Indian operations of Asian equity research major CLSA, besides 13 other FDI proposals involving Rs 1,584 crore.
"Based on the recommendations of Foreign Investment Promotion Board (FIPB)...Government has approved 14 Proposals of FDI amounting to Rs 1,584.11 crore approximately," the Finance Ministry said in a statement.
CLSA is an Asian unit of European Banking major Credit Agricole and is being purchased by China's leading brokerage firm Citic Securities.
The proposed FDI in CLSA Singapore Holdings is for "induction of foreign equity in an investing company (of CLSA) to carry on the business of process outsourcing services for clients, both domestic and offshore," the ministry said.
Without identifying the entity bringing in the FDI, it said "currently the Investor company is non functional".
The government also cleared the Rs 674 crore proposal of Maharashtra-based Abhijeet Power for induction of foreign equity in an investing company to make downstream investment.
Pune-based Bajaj Finserv, which was seeking government's nod to issue and allot equity shares to carry out the business relating to NBFC activities directly and through subsidiaries under Rights Issue, also has been cleared. The financial services provider firm proposes to bring in FDI worth Rs 100 crore.
In the telecom sector, the government has given its nod to Netmagic Solutions to bring in FDI worth Rs 182.8 crore. The company has sought permission to increase in foreign equity upto 74 per cent and induction of a new foreign collaborator to undertake the business of Internet Service Provider (ISP) with gateways.
Among other proposals which have been cleared included that of Hyderabad-based Takshila Tech Parks and Incubators (India) amounting to Rs 182.5 crore and MF Global Sify worth Rs 81 crore.
While 14 FDI proposals were cleared, decisions on 15 other proposals were deferred due to various reasons. These include applications of Tara Aerospace Systems, Ordain Health Care Global, Sterlite Networks and Mauritius-based Cloverdell Investments.
Also, seven requests for FDI including that of Appu Ghar Holdings and World Phone Internet Services were rejected, the ministry said.
FDI inflows in the country in 2011-12 was $36.50 billion.