Other Briefings
India May Widen Foreign Investment Definition
May 18 – The finance ministry is considering widening the scope of foreign investments to include instruments that give voting rights to foreign investors. Under the new FDI policy, a company qualifies as a local company if it has less than 50 percent foreign investments and has Indian directors as a majority resident. If the […]
Commerce Ministry Proposes Increased FDI in Defense Sector
May 18 – India’s Commerce and Industry Ministry has released a discussion paper that suggests increasing foreign direct investment in the defense sector from 26 percent to 74 percent to improve manufacturing and technology transfer in the country. The response to the proposal has been varied, with some suggesting an increase of 49 percent instead […]
New Oversight Body to Enforce FDI Ban on Sensitive Sectors
May 14 – The government will establish an oversight body to prevent foreign direct investments from entering banned sectors. This is to prevent FDI from entering prohibited sectors such as multi-brand retail, gambling, betting, lottery, atomic energy and plantation. “The proposal was discussed at a meeting attended by officials from various ministries including the department […]
Himachal, Uttarakhand Calls for Renewal of Special Industrial Package
May 13 – Himachal Pradesh and Uttarakhand state authorities are requesting that expired special industrial packages be renewed. Chief Ministers Prem Kumar Dhumal and Ramesh Pokhriyal Nishank submitted a joint letter to Prime Minister Manmohan Singh on Wednesday to request the renewal. The package has successfully enticed investment to the states with its host of […]
Singapore to Speed Up Indian Registration for Generic Drugs
May 12 – Singapore has agreed to make it easier for generic drugs from India with prior regulatory approval in the United States, Canada, the EU, Britain or Australia to enter the country. The fast-track drug registration process is a boost for India’s US$25-billion generic drug industry which will gain access to a large developed […]
Retail FDI May Be Allowed with Back-End Investment
May 11- Authorities are said to be considering foreign direct investment in multi-brand retail if foreign retailers invest heavily on back-end infrastructure like warehousing and cold storage. The Department of Industrial Policy and Promotion paper on FDI in retail may include a provision that requires global retailers to put a significant part of their investment […]
More Companies Turn to Dispute Resolution Panel
May 10 – More local and multinational companies in India are choosing to apply issues related to cross-border taxation to the newly established dispute resolution panel (DRP) rather than the conventional channels of appeal. Choosing the DRP route has the benefit of limiting the tax department from recovering tax pending a DRP verdict. Moreover, the […]
Reserve Bank of India Revises Pricing Guidelines for Transfer of Shares
May 10 – The Reserve Bank of India has revised pricing guidelines for the transfer of equity instruments from a resident to a non-resident and vice versa in a notification last month. Effective May 4, Foreign Exchange Management Act, 1999 (FEMA) 205/2010-RB will bring about the following changes: In case the shares are listed, the […]
