Tag: Foreign Investment
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Foreign Investment in Partly-paid Shares
[Posted by Umakanth Varottil] One of our regular readers, Rajvendra Sarswat, brings to our attention a recent news report indicating a proposal for allowing foreign investors to take up partly-paid shares in Indian companies. As Rajvendra rightly observes, “currently, if a foreign investor wishes to invest in India in installments, such as by paying half…
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FDI and Globalisation: Where Does India’s Policy Stand?
[Posted by Umakanth Varottil] (This is a cross-post from the Law and Other Things Blog) The theme for the January 2009 issue of Halsbury’s Law Monthly is Foreign Direct Investment (FDI) and Globalisation. The issue carries two articles that generally deal with FDI and three that specifically discuss issues on Indian policy. The first, an…
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FIPB Overrules Press Note 1 Objections
[Posted by Umakanth Varottil] Press Note 1 of 2005 issued by the Department of Industrial Policy & Promotion (DIPP) requires foreign companies to obtain the prior permission of the Foreign Investment Promotion Board (and thereby making the automatic route for investment inapplicable) if they had a joint venture with another Indian partner in the same…
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Paper on Capital Flows into India
[Posted by Umakanth Varottil] The RBI has published a paper by its Deputy Governor, Rakesh Mohan, titled “Capital Flows to India”. Although it approaches the topic predominantly from an economy and policy standpoint, it is also helpful in identifying the different types of flows (debt and equity) and carries a historical account of capital flows…
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Minimum Pricing Norms Eased for GDRs/FCCBs
[Posted by Umakanth Varottil] In yet another move to boost the capital markets, the Government has relaxed the minimum pricing norms for the issue of securities (being GDRs/ADRs/FCCBs) to foreign investors. This comes on the heels of similar relaxations provided to qualified institutional placements (QIPs) some weeks ago. There are two changes proposed: (i) the…
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Easier Access to Foreign News Magazines
[Posted by Umakanth Varottil] The Government has liberalised the policy for foreign print media, which now allows foreign news and current affairs magazines to publish Indian editions. This will allow Indian readers to access these magazines at more affordable rates. LiveMint has a report: “India has decided to allow the publication of local editions of…
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Revisiting the Foreign Venture Capital Regime
[Posted by Umakanth Varottil] In a previous post on this blog about four months ago, we had extolled the virtues of an economy possessing a favourable venture capital regime. We had also highlighted some of the progressive developments in the Indian venture capital market that were induced by favourable regulations issued by SEBI and RBI.…
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Warrants to Foreign Investors
[Posted by Umakanth Varottil] The Economic Times reports that there is a proposal within the Government to bring the issue of warrants by Indian companies to foreign investors within the automatic route where foreign direct investment is otherwise permitted under the automatic route. This move, if crystallized through a formal policy pronouncement, will dispel some…
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Press Note 1: Changes Expected
[Posted by Umakanth Varottil] Press Note 1 of 2005 issued by the Department of Industrial Policy & Promotion (DIPP) requires foreign companies to obtain the prior permission of the Foreign Investment Promotion Board (and thereby making the automatic route for investment ineligible) if they had a joint venture with another Indian partner in the same…
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The Impending FCCB Conundrum
[Posted by Umakanth Varottil] Foreign currency convertible bonds (FCCBs) have been issued by Indian companies, whereby investors have the option to convert these debt instruments into equity. Such conversion would normally occur when the market price of equity shares at the time of conversion is higher than the conversion price. But, with the markets now…