Centre plans to retain cap on voting rights for large shareholders in banks

INDIA PLANS TO retain a cap on voting rights for large shareholders in domestic banks, two sources said, signalling that New Delhi’s attempts to liberalise the financial sector and draw more foreign investment will remain limited in scope.

- REUTERS

The Reserve Bank of India (RBI) has initiated a number of steps to unwind complex regulations in recent months and has permitted foreign lenders to pick up large stakes in domestic banks.

The government is also planning to more than double the foreign-investment cap in state-owned lenders to 49%.