[The following guest post is contributed by Vinod Kothari of Vinod Kothari & Co.] Continuing with some other recent moves to liberalise the options of raising debt from external sector, the Reserve Bank of India (“RBI”) on 29 September, 2015 announced new guidelines (the “Guidelines”) for issuance of rupee-denominated bonds (“RDBs”) overseas. The Guidelines are much more...
RBI Circular on Payment Gateways
[The following guest post is contributed by Jitendra Soni, who is an associate at AZB & Partners in Noida. Views are personal] The Reserve Bank of India (“RBI“) has recently issued a fresh circular in an attempt to facilitate cross-border e-commerce transactions, which can be accessed here (“Circular”). Prior to this Circular, the authorized banks were permitted to offer the...
RBI’s Proposal for a Major Recast of ECB Norms
[The following guest post is contributed by Vinod Kothari of Vinod Kothari & Co. It deals with the details of the proposals announced by the RBI. In an earlier post, Pratik Datta sets out the background to RBI’s proposals] The Reserve Bank of India (RBI) has proposed a major recast of the norms for external commercial borrowings (ECBs). While India is still far from...
RBI’s Draft Framework on ECB: The Background
[This guest post is by Pratik Datta, who is a Consultant at the National Institute of Public Finance and Policy (NIPFP), New Delhi. He can be reached at [email protected].] Yesterday the Reserve Bank of India (RBI) released the draft framework for External Commercial Borrowing (ECB) for public comments on or before October 11, 2015. For the benefit of those who may be interested in providing...
Improving the Regulatory Framework Governing Masala Bonds
[The following post is contributed by Dhanush. M, a 5th year student at the Jindal Global Law School] “Masala bonds” refers to rupee denominated bonds issued in offshore capital markets which would be offered and settled in US dollars to raise Indian rupees from international investors for infrastructure financing in India. Masala bonds could prove to be a viable source of corporate finance as...
Start-up India: Should foreign listing of start-ups be facilitated?
[This guest post is by Pratik Datta and Mehtab Hans, who are Consultants at the National Institute of Public Finance and Policy (NIPFP), New Delhi. They can be reached at [email protected] and [email protected] respectively.] Last week, the SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2015 were issued to facilitate listing of start-ups on institutional...
Metal to Paper: India’s Sovereign Gold Bonds
[The following guest post is contributed by Rishi A, a fourth year student of Hidayatullah National Law University] The Government of India recently released a concept paper on Sovereign Gold Bonds. It has been proposed that these bonds would carry a fixed rate of interest of around 1.5-2%, which can be further raised by individual banks, and will be redeemable at the price of gold at the time of...
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...
Bombay High Court Pronounces on FDI Policy
It is not very often that courts in India have had the occasion to interpret and rule on the Foreign Direct Investment (FDI) Policy of the Government of India. Earlier this month, the Bombay High Court issued its ruling in IDBI Trusteeship Services Ltd. v. Hubtown Ltd., which relates to the legalities of a foreign investment structure that involved compulsory convertible debentures (CCDs) issued...
GIFT City: A New Chapter in the Indian Financial Sector: Part 2
[The following guest post is contributed by Surbhi Jaiswal of Vinod Kothari & Co. The author can be contacted at [email protected]. This is a continuation from the first part, which is available here] Slew of Regulations 1. Foreign Exchange Management (International Financial Service Centre ) Regulations, 2015 To operationalize the IFSC, a notification under the Foreign Exchange...
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