FDI – Neeraj Bhagat & Co.

January 1, 2021 / FDI

Foreign Direct Investment into India continuously growing

Foreign direct investments (FDIs) into India have been continuously growing as the country has one of the most facilitative policies to attract overseas investors, Commerce and Industry Minister Piyush Goyal said on Tuesday.
He said that during April-September 2020, FDI increased 13 per cent to about USD 40 billion.
“FDI inflows into India have been continuously growing. Even during the first nine months of this year, at the peak of the COVID-19 pandemic, our FDI has grown and we have …

December 7, 2020 / FDI

I&B Ministry asks digital news media to comply with FDI policy

The government on Monday issued a public notice, asking all the news websites, portals, aggregators and agencies to comply with the 26% foreign direct investment (FDI) policy for digital news media in a bid to check foreign influence and interference in domestic affairs, investigate Chinese and other overseas funding in news sites, and create a level-playing field for all media.
This implies that the companies with more than 26% foreign investment will have to bring it down by October 15th, …

January 1, 2021 / FDI

Ministry of Commerce and industry issues consolidated FDI policy, 2020

In order to attract and promote FDI in order to supplement domestic capital, technology and skills for accelerated economic growth and development, the Department for Promotion of Industry and Internal Trade has issued consolidated FDI policy, 2020 which is effected with effect from October 15, 2020.
The consolidated policy is a compilation of various decisions taken by the government with regard to FDI in different sectors. DPIIT, which deals with FDI related matters, compiles all policies related to foreign investment …

January 1, 2021 / FDI

Review of Foreign Direct Investment (FDI) policy in defense sector

The Government of India has reviewed the extant FDI policy in Defense sector. Now, FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses. Infusion of fresh foreign investment up to 49%, in a company not seeking industrial license or which already has Government approval for FDI in Defense, shall require mandatory submission of a declaration with the Ministry of Defense in case change in equity/shareholding pattern or transfer of stake by existing investor …

January 1, 2021 / FDI

Comparison between Branch office & Subsidiary company

Meaning of Branch Office: Branch office implies an establishment set up by parent company to perform the similar business operations at different locations. One of the common strategies of the Companies to expand their business at the national or international level, is to set up branches, at different places. Branches are a part of the parent organization, which are opened to perform the same business operations as performed by the parent company to increase their reach.

Meaning of Subsidiary …

June 10, 2020 / FDI

Govt. tweaks FDI norms; bars automatic investment in Indian Cos. from neighbouring countries

The Government of India has reviewed the extant FDI policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic and amended para 3.1.1 of extant FDI policy as contained in Consolidated FDI Policy, 2017 as under:
(a) A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment …

April 8, 2020 / FDI

FDI Push Likely to Give Further Boost to Rupee

The Indian rupee, which climbed 6% last year amid record fund flows from overseas, is set to appreciate further against the dollar this year, with traders expecting foreign direct investments (FDIs) to accelerate after New Delhi eased ownership rules in industries as diverse and capital-intensive as retail, civil aviation, and realty.
“The relaxed rules will give an additional push to the rupee, which is likely to gain this year,” said Anaindya Banerjee, currency analyst at Kotak Securities. “Although the …