Lock-in norms for FDI in real estate may be relaxed

The government may relax minimum lock-in norms for FDI in real estate. It is considering a lock-in of three years on the original FDI brought at the time of starting the business. As of now, the lock-in applies to every tranche of investment brought in by a foreign player — a key deterrent for FDI. If the proposal gets a go-ahead from the Department of Industrial Policy and Promotion (DIPP), foreign players could easily repatriate profits from their investments in the country and save the original investment, which is $5 million. This means that the minimum lock-in period for foreign direct investment in real estate, which bars repatriation of profits, would only apply to the stipulated original investment, which is pegged at $5 million. Any amount invested in tranches over this can be repatriated.

Source: Financial Express