FEMA Archives - Page 2 of 2 - Neeraj Bhagat & Co.

April 8, 2020 / FEMA

Cabinet nod for foreign listing of firms, decriminalising offences

The Union Cabinet has approved 72 changes to the Companies Act 2013, with a thrust on decriminalising compoundable offences and allowing direct foreign listing for domestic companies to boost “Brand India”.
The nod for the Companies amendment Bill, likely to be tabled in the ongoing Parliament session, has been given to ease compliance burden related to corporate social responsibility (CSR) by exempting companies with obligation to spend Rs. 50 lakh or less. Such companies will not be required to have …

April 8, 2020 / FEMA

FDI in Telecom Services sector

Telecommunications is one of the fastest growing industries in India that has undergone an innovative phase over the past few years and stands as the second largest telecommunications market in the world after China. It is due to liberalization policy that telecom sector could attract more FDI flows in private sector participation increased in total telephone connections of the nation. This led the sector to competitive stimulus, high telecom penetration and substantial reduction in tariffs. Though foreign telecom players have …

April 8, 2020 / FEMA

External Commercial Borrowings: Regulatory Framework Substantially Relaxed

Funding Indian corporates through debt has been traditionally been a preferred mode of funding due to inherent advantages such as security creation, minimum guaranteed returns and tax optimization for both the lender as well as the borrower. The modes for offshore debt funding have been limited to external commercial borrowings (“ECB”), non-convertible debentures (“NCD”), compulsorily convertible debentures and certain hybrid debt instruments. Each of these options have been subjected to regulatory restrictions in terms of eligible …

April 8, 2020 / FEMA

Closure of Liaison Office in India- Compliances to be done

Liaison offices (LOs) are a popular option for foreign investors exploring the Indian market for the first time, and unsure of how the country’s liberalizing FDI caps will affect their business.

In contrast to other business structures, LOs allow foreign companies to establish a light footprint in India while keeping their financial, legal, and administrative commitments low.

Normally, Liaison Office are registered in India for specified/limited purpose and when such purposes are achieved, either LO may want to get registered …

April 8, 2020 / FEMA

Overseas Direct Investment (ODI)

Introduction
1. Overseas investments (or financial commitment) in :
• Joint Venture (JV) &
• Wholly Owned Subsidiaries (WOS) have been recognized as important avenues for promoting global business by Indian entrepreneurs.

2. Joint ventures are perceived as amedium of:
• economic &
• business co-operation betweenIndia and other countries.

3. Transfer of :
• Technology & skill
• Sharing of results of R&D
• Access to wider global market
• Promotion of brand image
• Generation of employment &…

April 8, 2020 / FEMA

Post-FIPB, RBI To Frame Procedure For FDI Approval

The Reserve Bank is expected to formulate standard operating procedure (SOP) for approval of FDI proposals by ministries following the government decision to phase out FIPB.
The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the FDI policy, was discussed at a recent inter-ministerial meeting in apply for gst online .
According to sources, several options came up for discussions at the meeting. In order to further …