Tag: Foreign Exchange Regulation
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Improving the Regulatory Framework Governing Masala Bonds
[Posted by Umakanth Varottil] [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.…
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Start-up India: Should foreign listing of start-ups be facilitated?
[Posted by Umakanth Varottil] [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…
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Metal to Paper: India’s Sovereign Gold Bonds
[Posted by Umakanth Varottil] [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…
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DIPP Clarification on NRI Investments
[Posted by Umakanth Varottil] [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…
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Bombay High Court Pronounces on FDI Policy
[Posted by Umakanth Varottil] 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…
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GIFT City: A New Chapter in the Indian Financial Sector: Part 2
[Posted by Umakanth Varottil] [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,…
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GIFT City: A New Chapter in the Indian Financial Sector: Part 1
[Posted by Umakanth Varottil] [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…
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RBI Allows FDI against “Legitimate Dues”
[Posted by Umakanth Varottil] 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…
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RBI Reforms on Investment Instruments and Pricing
[Posted by Umakanth Varottil] 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…