Which of the following is not the recommendation of the Arvind Mayaram Committee on Rationalizing the FDI/FPI definition (June 2014) ?

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Q: 115 (CDS-II/2014)

Which of the following is not the recommendation of the Arvind Mayaram Committee on Rationalizing the FDI/FPI definition (June 2014) ?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,56,159,67,56,36,56

keywords: 

{'foreign direct investment': [0, 0, 2, 7], 'fdi': [0, 0, 3, 7], 'foreign investment': [0, 0, 0, 1], 'foreign portfolio investment': [0, 0, 1, 3], 'nri investors': [0, 0, 0, 1], 'fpi definition': [0, 0, 0, 1], 'investments': [0, 0, 0, 3], 'investor': [0, 0, 0, 1], 'repayable investment': [0, 0, 0, 1], 'fdi route': [0, 0, 0, 1], 'equity capital': [0, 0, 0, 1], 'equity shares': [0, 0, 0, 2], 'fpi': [0, 0, 0, 1], 'anyinvestment': [0, 0, 0, 1], 'particular company': [0, 0, 0, 1], 'arvind mayaram committee': [0, 0, 0, 1]}

Option 1 states that foreign investment of 10% or more in a listed company will be treated as foreign direct investment (FDI). This means that any investment that meets this criterion will be classified as FDI.

Option 2 states that an investor can hold investments either under the Foreign Portfolio Investment (FPI) route or under the FDI route, but not both. This means that an investor can choose to invest in a company either through FPI or FDI but cannot have investments in the same company through both routes simultaneously.

Option 3 states that any investment by way of equity shares, compulsorily convertible preference shares /debentures which is less than 10% of the post-issue paid-up equity capital of a company shall be treated as FPI. This means that investments that are less than 10% of a company`s post-issue paid-up equity capital will be categorized as FPI.

Option 4 states that the committee recommended treating non-repayable investment by NRI investors as FDI. This means that any investment made by non-resident Indians (NRIs) that cannot be repaid will be considered as FDI.

The correct answer is option 4, as it does not align with the recommendations of the Arvind Mayaram