BACKGROUND
Monday morning June 20, 2016, people woke up to the news of Mr.
Raghuram Rajan returning to academia after his term as the RBI
Governor ends. Before the Indian markets could react to this news,
by mid-day, the scenario changed as the Indian Government announced
its decision to bring about sweeping changes to the Foreign Direct
Investment ("FDI") Policy.
The FDI Policy has been further liberalized thereby providing an
extremely favourable environment for a further impetus to increased
foreign direct investment into the country. This will result in the
creation of more job opportunities and increasing overall
competitiveness in the economy ultimately leading to tremendous
growth opportunities. As stated in the Press Release of June 20,
2016 by which the said liberalisations have been issued, India now
stands as the most liberalized country for foreign investment in
the world. A number of sectors have been thrown open for foreign
investment either under the
