TagForeign Investment

DIPP’s Revised FDI Policy for E-commerce: Changing the Rules of the Game

[Baibhav Panda is a recent law graduate from KLE Law College, Bengaluru and is presently a legal trainee at Nucleus Software Limited] On 26 December 2018 the Department of Industry and Promotion (DIPP), Ministry of Commerce and Industry issued Press Note 2 (2018 series) introducing changes to the conditions that would be applicable to the e-commerce entities. The press note now amends para 5.2.15...

Cross Listing of Shares: A Start

[Rahul Sinha is a consultant with EY] The Securities and Exchange Board of India (“SEBI”) constituted the ‘Expert Committee for listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated outside India on Indian stock exchanges’ on 12 June 2018 with a view to facilitating companies incorporated in India to directly list their equity shares...

New Measures to Spur FDI in the Indian Defence Sector

[Bhavin Gada is a Partner and Soumya Shanker a Senior Associate at M/s Economic Laws Practice, Advocates and Solicitors. The views of the authors are personal] Timeline of Liberalisation of FDI Regime From 2000 to 2016, foreign investment in the Indian defence sector has been approximately USD 5.12 million. Looking at the total foreign investment inflows to India, one could say that this...

The “Masala” in Rupee Denominated Bonds

[Anirudh Singh is a 4th year B.A LL.B (Hons.) student at NALSAR University, Hyderabad] Background Rupee Denominated Bonds (RDBs),more commonly known as “Masala Bonds”, are debt securities denominated in Indian rupees issued by Indian entities to overseas investors but settled in foreign currency. In other words, they are rupee denominated bonds issued to overseas buyers. Though these bonds are...

The Walmart-Flipkart Deal: A New Era For The Indian E-Commerce Industry

[Hitakshi Mahendru is a 5th Year Law Student at Symbiosis Law School, Pune] Introduction In its order dated 8 August 2018, the Competition Commission of India (CCI) approved the 77% acquisition of outstanding shares of Flipkart Private Limited (Flipkart) by Walmart International Holdings Inc (Walmart) and stated that it is not likely to have an appreciable adverse effect on competition in India...

Direct Listing of Indian Companies on Foreign Exchanges and Vice Versa: A New Era for Fundraising

[Tanaya Desai is a 5th-year student at ILS Law College, Pune] Introduction In its press release dated June 12, 2018, the Securities Exchange Board of India (“SEBI”) expressed its intention to consider facilitating unlisted companies incorporated in India to directly list their equity share capital on foreign exchanges and, concurrently, of foreign firms on Indian exchanges. In furtherance of the...

SEBI Informal Guidance on Foreign Portfolio Investments in Unlisted Non-Convertible Debentures

[Kosha Thaker is a corporate lawyer with a law firm in Mumbai] Background Earlier, registered foreign portfolio investors (“FPIs”) were permitted to invest only in listed non-convertible debentures (“NCDs”) or to-be listed non-convertible debentures (i.e. if the NCDs were listed within a period of 15 days from such investment). There was, however, a special carve out for FPIs investing in...

Cross Border Mergers in India: RBI Notification and Some Implications

[Roshni Menon is a 5th year B.A., LL.B (Hons.) student at School of Law, Christ University in Bangalore] Upon tracing the history of cross border mergers in India, one finds that the erstwhile Companies Act, (“1956 Act”) did contain provisions relating to the subject, however limited in its application. This law permitted a merger between a foreign company and an Indian company where the...

Analysis of “Externalisation” under Indian Law

[Deepansh Guwalani is a 4th Year Student at ILS Law College, Pune] Introduction “Externalisation” is a strategy of incorporating holding companies in offshore jurisdictions to enjoy certain benefits which the home country does not offer. The strategy is employed by companies to move their corporate structures away from the Indian tax and regulatory regimes. How it is done The process of...

“Single-brand” Retail Trading Remains an Ambiguity in the Indian FDI Policy

[Dhanush Dinesh is a III Year, B.A. LL.B (Hons.) student at the National Law School of India University, Bangalore] Introduction Press Note 1 of 2018, amending the 2018 Indian FDI Policy, has been the cause for much celebration amongst foreign-owned entities engaging in single-brand retail trading (“SBRT”). With this press note, the entry route for foreign investment in SBRT has been simplified...

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