FIPB rejects Red Fort Realty Fund plan

The Foreign Investment Promotion Board (FIPB), the nodal body for clearing foreign direct investment proposals, has rejected a proposal by Red Fort India Realty Fund (Trust), a registered venture capital fund for real estate investments, to bring in investments from offshore corporate entities owned by non-resident Indians.

The FIPB, at its meeting held on March 7, 2008, also deferred a proposal by Singtel Australia Holding to set up a joint venture company with foreign equity up to 74 per cent for offering telecom services.

This proposal attracts Press Note 1 of 2005 series as SingTel has a joint venture with Bharti Tele-Ventures.

Finance Minister P Chidambaram has approved 18 foreign direct investment proposals amounting to Rs 1,553 crore, based on the FIPB's recommendations.

The Mumbai-based Essar Capital has received the nod to act as a holding company for making downstream investments in the financial sector and inducting foreign equity by way of subscription and acquisition of equity shares.

The approval involves foreign investment of Rs 560 crore.

The Kolkata-based Bharat Connect's foreign investment proposal of Rs 250 crore to change status from operating company to operating-cum-holding company and make downstream investments in NBFC companies has also received the go-ahead from Chidambaram.