Other Briefings
Competition Commission of India on Mergers and Acquisitions
Jun. 9 – The Competition Commission of India needs to be notified for all transactions involving mergers and acquisitions in the country – including pre-merger clearances. Since June 1, 2011 prior clearance from the CCI authorities is required if mergers or acquisitions result in a “combination” within the meaning of Sections 5(a), (b) and (c) […]
India Increases External Commercial Borrowing Limit
Jun. 1 – The Indian government has decided to raise the limit of external commercial borrowings to US$30 billion from the current US$20billion while, in another decision, the government has decided not to raise the foreign investor’s limits in government bonds. Presently, foreign institutional investors can invest up to US$10 billion in government bonds. The […]
India Signs Double Taxation Avoidance Agreement with Ethiopia
May 31 – India signed a double taxation avoidance agreement (DTAA) with the Federal Democratic Republic of Ethiopia on May 25, 2011 for the prevention of double taxation and fiscal evasion with respect to taxes on income. The contract was signed by External Affairs Minister of India on behalf of the Government of India and […]
India’s Registrar of Companies to Issue Certificates by Digital Signature
May 23 – The Ministry of Corporate Affairs in India has issued a new circular kick starting the “Green Initiative in Corporate Governance” by allowing companies to complete electronic, paperless compliance after considering relevant sections of the Information Technology Act (2000) and the Companies Act (1956).
RBI Liberalizes Opening of Escrow Accounts for FDI Transactions
May 16 – In order to support foreign direct investment into India, the RBI has loosened up the rules and now permits foreign investors to raise funds by pledging shares of Indian companies to banks without its authorization. The Reserve Bank of India has liberalized the opening of escrow accounts for foreign direct investment transactions […]
Escrow Mechanism
May 10 – The Reserve Bank of India (RBI) has allowed AD Category – I Banks (AD Banks) to permit assurance of shares of an Indian company seized by non-residents subject to under the following situation: Assurance in favor of Indian banks in India Reason: Shares may be assured to secure credit facilities comprehensive to […]
Local DIN Holders in India Need to Submit PAN
May 9 – Earlier, India’s permanent account number (PAN) system was not the mandatory field for directors identification number DIN-1 eForm. So in order to avoid Duplicate DIN, it has been decided that all the DIN holders who have not furnished their PAN earlier at the time of obtaining DIN, are required to furnish their […]
Newer, Faster Approval Procedure for Businesses Underway
India will soon have a system in place that will simplify the process of approval for business projects, according to a government official. It will not only encourage investors to invest in India but also young entrepreneurs to start up their own businesses.
