FERA- Disappointment for Indian Big Business

MANY big Indian business houses are now greatly disappointed with the way the 'rupeeisation' programme under the provisions of the Foreign Exchange Regulation Act (FERA) is unfolding. They had been hoping to get sizeable control over some of the most prestigious foreign companies through purchase of their shares in bulk, as they took in Indian shareholders in accordance with FERA. But now to their dismay they find that most of the foreign companies are allotment in favour of one more indian houses. During the past several months there had been hectic behind-the- scenes activity to induce the foreign principals of foreign companies to come to some sort of agreement with the Indian houses,' Senior Indian industrialists had been paying frequent visits to London and other places to sell to the overseas principals the idea of taking them in into . the management of the 'rueeised' companies. In some cases the Indians even tried to give the impression that New Delhi would also like the foreign companies to offer their shares to these Indian houses. But then with change of government and the changed equation between many of these houses and the new administration the Indian houses have been denied one of their vital leverages.