TagForeign Investment

India’s FDI Policy Distances Itself from Neighbours: Can China bring an MFN Claim?

[Smriti Kalra is a IV year B.A., LL.B. (Hons.) student at the National Law School of India University, Bangalore] On 17 April 2020, the Indian government issued a press note which makes foreign direct investment (FDI) from “an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country ”...

Revised FDI Policy for Neighbouring Countries

[Divya Rau is a fourth year law student in Jindal Global Law School] The Department for Promotion of Industry and International Trade (DPIIT) released Press Note 3 (2020 series) on 17 April 2020. The Press Note alters para 3.1.1 of the Consolidated FDI Policy, 2017. The Press Note provides that any non-resident entity in a country sharing a land border with India can invest in India only by...

Rationalization of Participatory Notes: SEBI’s Regulatory Conundrum

[Tushar Oberoy and Rishabh Sharma are 4th Year, BA.LL.B. (Hons.) students at NALSAR University of Law, Hyderabad] In 2017, the Securities and Exchange Board of India (SEBI) had released a circular which practically rendered participatory notes (P-Notes) futile as an instrument for investment in India. The circular stated that foreign portfolio investors (FPIs) could not issue overseas derivative...

Key Impact of the Proposed Reforms to the FDI Policy

[Rishabh Sharma is a IV Year BA.LLB. (Hons.) student at NALSAR University of Law, Hyderabad] On 28 August 2019, the Union Cabinet approved the proposed changes in foreign direct investment (FDI) norms in four sectors, namely, coal mining, digital media, single brand retail trading (SBRT), and contract manufacturing. The approved reforms in the FDI policy are anticipated to make India an...

Voluntary Retention Route for Foreign Portfolio Investors

[Bhawana Keshwani is a student at Law College Dehradun, Faculty of Uttaranchal University] In March 2019, the Reserve Bank of India (RBI) along with Government of India and the Securities and Exchange Board of India (SEBI) introduced a new window called “Voluntary Retention Route” to encourage Foreign Portfolio Investors (FPI) to lock their investments in India for a considerable period. This...

Food Combos: Whether Single-Brand or Multi-Brand Retailing?

[Akhil Kumar is a fourth year BA LLB (Hons.) student and Ayushi Singh a third year BA LLB (Hons.) student at NUALS, Kochi] Single and Multi-Brand Retail Trading According to paragraph 5.2.1. of the Foreign Direct Investment Policy (“Policy”), foreign direct investment (“FDI”) in the manufacturing sector is permitted in India under the automatic route. Further, a manufacturer is permitted to sell...

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...

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