英语论文网

3 enabled IDBI to become a banking company without the need to obtain a separate banking licence under the Banking Regulation Act, 1949. IDBI Ltd. will enjoy certain regulatory forbearance, including exemption from compliance with SLR requirements (mandated under the Banking Regulation Act) for the first five years. All existing shareholders of the erstwhile IDBI, including the Central Government, have become pro-rata shareholders of IDBI Ltd. from the 'appointed date'. Further, the provisions of the Memorandum and Articles of Association of IDBI Ltd. require that the Central Government, as a shareholder of the Company, shall, at all times, maintain not less than 51% of the issued capital of the company.

The authorized capital of IDBI Ltd, has been reduced to Rs.1250 crore from Rs.1500 crore (the authorized capital of erstwhile IDBI) in conformity with the provision of the Banking Regulation Act. The paid-up capital of the Company, at Rs.653 crore, however, remains the same as the paid-up capital of the erstwhile IDBI

Role of Financial Institutions in Foreign Investment in India
The main role of the financial institutions in India in respect to foreign investments is to aid foreign investors in investment activities in India. The funds from overseas countries come in two forms: Foreign direct Investments and Joint Ventures of the foreign companies with Indian companies.

Foreign direct investments inflows are approved through automatic route or through government route. Those units that require government approval to get funds require the FIPB approval. Foreign Direct Investment through automatic route, on the other hand, does not require FIPB approval. All these allocation of financial assistance to various industrial units in India are guided by the financial institutions set up in various parts of India. Some of the leading financial institutions in India that play an important role in foreign investments in India are RBI, IDBI Bank, IFCI Bank, ICICI Limited and EXIM Bank.

Role of IDBI in Foreign Investment
The role of IDBI in Foreign Investment is mainly to provide financial assistance on a consortium basis to various industrial units in India which are mainly involved in manufacturing or processing of goods, mining, transport generation and distribution of power.

Main Functions of IDBI
IDBI coordinates between various financial institutions who are highly involved in provide financial assistance, promoting, and developing various industrial units
IDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs, planning of consultancy services for both the small scale enterprises and the medium sized industrial units
IDBI works for the advancement of technology and other welfare schemes to ensure economic development.
Industrial Development Bank of India acts as a catalyst in various industrial development programs
IDBI provides financial assistance to all kinds of industrial units which comes under the provisions of the IDBI Act
IDBI has served various industrial sectors in India for about three years and has grown leaps and bounds in its size and operating units
Role of IDBI in Foreign Investment
It manages various financial institutions working under IDBI bank
Provides financial assistance to various industrial units in terms of