Views on New FDI norms for Pharmaceuticals: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on New FDI norms for Pharmaceuticals

"Under the new FDI norms, 74% FDI would be allowed in pharmaceutical sector under the automatic route which means that investors will not need government's approval to invest up to 74% in existing companies. Currently, FDI up to 100% is permitted in new projects in the pharmaceutical sector but in Brownfield ones - the existing companies - the foreign investment is permitted through FIPB approval. The new norms will enable enhanced investments (in the form of M&A Activity) from the MNC companies, which believe in the growth potential of the Domestic Industry. We remain positive on the sector, maintaining our recommendations."

Source : Equity Bulls

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