Tag: Foreign Exchange Regulation
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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…
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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 prat.nujs@gmail.com and mehtabhans@gmail.com respectively.] Last week, the SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2015 were issued to facilitate listing of start-ups…
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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…
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DIPP Clarification on NRI Investments
[The following guest post is contributed by Dipanjali Nagpal of Vinod Kothari & Co. The author may be contacted at corplaw@vinodkothari.com. 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…
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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…
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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 surbhi@vinodkothari.com. 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…
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GIFT City: A New Chapter in the Indian Financial Sector: Part 1
[The following guest post is contributed by Surbhi Jaiswal of Vinod Kothari & Co. The author can be contacted at surbhi@vinodkothari.com.] The International Financial Service Centre (IFSC) is a hub of financial services within a country, which has laws and regulations that are different from the rest of the country. Usually these centres have low…
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RBI Allows FDI against “Legitimate Dues”
Hitherto, an Indian company could issue shares to a non-resident against payment obligations only in certain circumstances. These related to “lump-sum technical know-how fee, royalty, External Commercial Borrowings (ECB) (other than import dues deemed as ECB or Trade Credit as per RBI guidelines) and import payables of capital goods by units in Special Economic Zones”…
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RBI Reforms on Investment Instruments and Pricing
The Reserve Bank of India (RBI) has recently brought about two sets of related reforms that introduce much greater flexibility to foreign investors in investing in Indian companies that gets rid of some of the rigidity that hitherto existed. In terms of investment instruments, the RBI has permitted investment in partly paid shares and warrants.…
