Other Briefings
India Allows 100% FDI in Several Key Sectors
Apr. 7 – India’s Department of Industrial Policy and Promotion has released the “Consolidated FDI Policy – Circular 1 of 2011,” that will allow 100 percent FDI in the development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions. Furthermore, animal husbandry (including the of breeding […]
Changes on Pricing of Convertible Instruments
Apr. 6 – Companies are now free to lay down a formula to transform convertible instruments (like debentures, partly paid shares, preferential shares and the like) into equity in accordance with the guidelines of FEMA and SEBI. India’s Department of Industrial Policy of Promotion has also relaxed the rules and regulations for convertible instruments to […]
India Releases Third Consolidated FDI Policy
Removal of the condition of prior approval with reference to existing joint ventures/technical collaborations in the same sector Apr. 5 – In an updated foreign direct investment policy, the government of India stated a simplification of joint venture norms and opened up new areas for overseas funds. In a milestone decision, the government eased regulations […]
India Puts Accounting Practices in Line with International Standards
The Indian Ministry of Corporate Affairs recently said that it had aligned 35 Indian accounting practices with international standards, marking an important step to bringing International Financial Reporting Standards (IFRS) …
Indian 2011/12 Budget Good for Foreign Investment
Mar. 1 – Finance Minister Pranab Kumar Mukherjee presented the Union Budget for 2011/12 this past Monday. The budget focuses on finding a balance between controlling inflation and maintaining economic growth. Good news for foreign investors comes in the form of no drastic changes in taxation rates, no negative indications, and no major reform agenda. […]
RBI Relaxes Lending Rules for Bank Loans to Microfinance Institutions
The Reserve Bank of India temporarily relaxed lending rules for bank loans to microfinance institutions, allowing banks to continue offering loans to the ailing sector. The RBI will, for a short period of time, permit banks to classify loans that might be delinquent as standard to introduce some liquidity into the industry.
Delhi High Court Upholds ICC Decision Favoring American Company
Jan. 19 – In a recent ruling, the Delhi High Court upheld the enforcement of a decision made by the International Chamber of Commerce in Paris, a body that arbitrates disputes between international firms. The dispute was between the American firm Penn Racquet Sports and an Indian company, Mayor International Limited, and ICC’s decision awarding […]
Cash Shortages Hit Indian Banks
Dec. 22 – Indian banks may recently be experiencing a cash crunch caused by the increasing borrowings of domestic companies since July this year. The shortage has increased the repo borrowings by banks as well as the interbank loan interest rates, according to a December 21 report on Times of India (TOI). On December 20, […]
