Sitharaman: Don’t want fly by night operators in bank, defence

New Delhi:  The government said FII investment limit in the banking and defence sector has been retained at the existing level to prevent ‘fly by night operators’ from disrupting the sensitive segments.  “In defence as regards the cap which prevailed for FII and in the banking particularly the private sector banking on FIIs… In those two specific areas, those specific sub-caps (will) prevail,” Commerce and Industry Minister Nirmala Sitharaman said. She said that “we do not want fly by night operators or quick money coming in or going on (in sensitive sectors)”.          The statement assumes significance as introduction of composite caps on foreign investment has led to confusion among bankers who say overseas portfolio investments can now go up to 74 per cent as against the current ceiling of 49 per cent.  Portfolio investments (FIIS, FPIs, QFIs), which are in the nature of hot money, cannot go beyond the current limit of 49 per cent in the private sector banks.