Revised Norms on Foreign Direct Investment in Asset Reconstruction companies

The Department of Industrial Policy & Promotion has vide a Press Note dated 6th May 2016 allowed 100% foreign direct investment under the automatic route in Asset Reconstruction Companies (“ARC”). Subject to certain key conditions the investment limit of the sponsor in the shareholding of an ARC will be governed by the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the “SARFAESI Act”) as amended from time to time. (more…)

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Government Defines E-Commerce Marketplace Rules, Allows 100% FDI

The Department of Industrial Policy & Promotion (“DIPP”) has vide a Press Note dated 29th March, 2016 issued Guidelines for Foreign Direct Investment (“FDI”) in E-commerce. The FDI policy as amended from time to time permits 100% FDI under automatic route in Business to Business (B2B) e-commerce. FDI in B2C e-commerce is not permitted however was later permitted (vide Press Note dated 24th Nov.2015) only for certain manufacturers engaged in single brand retail. Under the said DIPP Press Note following clarifications have been brought out – (more…)

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Government Allows 49% FDI Under Automatic Route In Insurance Sector

The Department of Industrial Policy and Promotion (“DIPP”) has vide a notification dated 23rd March, 2016 liberalized its Foreign Direct Investment Policy (“FDI”) for the insurance sector by raising the foreign investment equity cap to 49% thus permitting overseas companies to buy 49% stake in domestic insurers without prior approval from the Foreign Investment Promotion Board (“FIPB”). Until now, FDI up to 26% was allowed through the automatic approval route in the insurance sector, while any investment between 26 and 49% required the FIPB approval. (more…)

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Single Brand Retail Companies with stores permitted to sell online

The Department of Industrial Policy and Promotion vide Press Note dated 10th November 2015 announced a slew of FDI reforms across 15 sectors which include Single-Brand Retail and E-commerce.

The highlights of the Press Note are detailed as under:

  1. A manufacturer will be permitted to undertake or sell its product through wholesale and/or retail, including through e-commerce without Government approval; (more…)
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Centre allows FDI through partly paid shares, warrants

The Indian Government has eased the Foreign Direct Investment (“FDI”) norms by allowing partly paid shares and warrants as eligible capital instruments. This means an Indian company looking to bring in funds can now issue such instruments without any approval. Accordingly, the Department of Industrial Policy & Promotion (“DIPP”) on 15th September, 2015 issued a Press Note notifying the amendments to the ‘Consolidated FDI Policy of 2015’. (more…)

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