FDI in retail: SC tells govt to amend FEMA rules in 2 weeks

The Supreme Court has come to the government's rescue on Foreign Direct Investment (FDI) in the retail sector. The Supreme Court has asked the government to amend the Foreign Exchange Management Act (FEMA) regulations to implement FDI in retail.

The court said that the RBI has till date not amended the regulation which will legitimise government's FDI policy. The government has now asked RBI to amend FEMA regulations so that FDI in retail can be implemented. RBI will make the required changes in FEMA by November 3. The Supreme Court has also refused to stay the government's meeting scheduled for October 19, to give licences to 50 companies for FDI in retail. The order came on a PIL against the FDI policy since the act wasn't amended.