Easing Investor Exit in the Construction Development Sector: A Loss for Domestic Infrastructure?

[The following guest post is contributed by Abhinav Kumar, who is a 5th Year, B. A. LL. B (Hons.) student at NLU, Jodhpur] The Department of Industrial Policy and Promotion (“DIPP”) issued Press Note 12 (“PN12”) in November, being the last of the 2015 series. Titled “Review of FDI policy on various sectors”, PN12 brought sweeping changes to the FDI regime pertaining to around 15 sectors...

Major FDI Reforms: A Snapshot

[The following guest post is contributed by Bhushan Shah & Labdhi Shah from Mansukhlal Hiralal & Company] The Government last week issued a Press Note announcing reforms (“Reforms“) in 15 major sectors in respect of Foreign Direct Investment (FDI). The objective of the Government is to ease the process of foreign investments in the country and bring substantial...

Insurance Companies: IRDA Seeks Control in Indian Hands

[The following post is contributed by Vinod Kothari of Vinod Kothari & Co. He may be contacted at [email protected]] The issue of ownership and control of insurance companies in India has been in a state of flux since early this year. While the intent of the Government was clear – to permit FDI up to 49% in the insurance sector – the Rules framed by the Ministry of Finance in February...

Foreign owned or controlled companies: Is sharing of office infrastructure real estate business?

[The following guest post is contributed by Vinod Kothari of Vinod Kothari & Co.] If a company wholly or majorly owned by non residents allows group or subsidiary companies to share your photocopier, or server, or staff, are you engaged in “real estate business”? The question itself must have startled most: however, a purported clarification of the Department of Industrial Policy and...

Composite Caps for Foreign Investment Formalized

We had earlier discussed the Union Cabinet’s decision to create composite caps for foreign investment under various categories. That decision has now been formalized in the form of Press Note No. 8 of 2015 issued by the Department of Industrial Policy & Promotion, Government of India (“DIPP”). In the previous post, we had highlighted two outstanding issues from the Cabinet decision that were...

Composite Caps for Foreign Investment

Although liberalized over time, caps on foreign investments in select sectors have been a hallmark of India’s foreign investment policy. Added to this is the prescription of “sub-limits” for specific types of foreign investment such as foreign portfolio investment (FPI) and foreign direct investment (FDI). Currently, in several sectors there are different caps for FPI and FDI. For example, in the...

Lack of Regulatory Clarity on Foreign Investment in the Insurance Sector

[The following guest post is contributed by Nivedita Shankar, Senior Associate, Corporate Law Division, Vinod Kothari & Company. The author may be reached at [email protected]]. An increase in the threshold limit for foreign investment in insurance companies has been hailed as a major thrust for the insurance sector, which has seen very few players. In this background, the Indian...

DIPP Clarification on NRI Investments

[The following guest post is contributed by Dipanjali Nagpal of Vinod Kothari & Co. The author may be contacted at [email protected] This post follows upon an earlier more brief post on the topic.] The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India reviewed the Consolidated Foreign Direct Investment (FDI) Policy Circular of...

Liberalization of Investments by Non-Resident Indians

Non-resident Indians (NRIs) have long been considered as a separate category of investors who have enjoyed some privileges compared to other classes of foreign investors. NRIs have been allowed to investment either on a repatriable basis (with more stringent norms) and on a non-repatriable basis (with less stringent norms). Earlier this week, by way of Press Note No. 7 (2015 Series), the...

Consolidated FDI Policy Circular of 2015

The Department of Industrial Policy
and Promotion (DIPP), Ministry of Commerce and Industry has issued its annual FDI Policy
Circular for 2015, which takes effect from May 12, 2015. Although the
circular essentially consolidates all the changes made to the policy during the
previous year, there are some further changes that are discussed in this EY
Regulatory Alert (via The Firm).

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