News and Events
- New Companies Bill Will Make Firm Easy To Entry & Exit, Says Pilot, APRIL 5, 2013 :
India essentially present a "welcoming and comforting" surroundings to foreign capitalists who are incisive to establish companies and make up jobs here, Corporate Affairs Minister Sachin Pilot has said. Accenting the demand to have a growth model that makes jobs, Pilot on Friday told that the Government only cannot render jobs for the growing youth and that enterprising activity has to be bucked up for this purpose.He also said that close support and good working relationship between the Union and State Governments were necessary for catering a good investment climate to foreign investors.
India needs to make 50 million jobs every year to keep up the current growth impulse and provide possibility for those entering the job market. The Companies Bill - when decreed into law - will get rid of impediments and promote job creation in India, Pilot said at the second international meeting of Corporate Secretaries International Association (CSIA) here.
"We want to form the path easier (for investing). We acknowledge that there are impediments to investing here in terms of clearances etc. "One of the complaints that is often heard in India is it is very hard to begin a company or perhaps infeasible to wind it up. "If the Companies Bill gets decreed into law, we will be able to cut down the time taken to wind up a company. There are a lot of standards that we are following now which may not be there when new law gets represented," Pilot said. He was anticipative that the Upper House of Parliament would presently pass the Companies Bill, which will renew the just about six-decade old Companies Act.
- Fight Between Sebi & Sahara May Bring Change In Corporate Law, March 20, 2013 :
One consequence of the Sebi-Sahara conflict could be an alteration in the Companies Law. The corporate affairs ministry is talking about how to change laws to stop ambiguities in the current legal authorities that regulates share and debenture sales. A top official in the law ministry says that it is considering of withdrawing ambiguity in laws governing private placement of safeties. Sale of securities to more than 50 people is presently thoughtful as a public issue and, thence, open to close regulatory investigation. If only 49 entities offer to a share or debt issue, it is take for private.
The applicable clause in Section 67 of the Companies Act says, "given that nothing contained in this sub-section shall employ in a case where the offer or request to offer for shares or debentures is made to fifty persons or more" Externally the ministry is wording how to close this loophole. The official said one way could be to stop it when framing rules below the new Companies Act. He, even so, did not stipulate how the revised wording could be. The Act was demode by the Lok Sabha in December but has to be improved by the Rajya Sabha.
Meanwhile, Sahara is warring a public battle to support its chief out of jail. At one point of time (in 2010) in the noise Sahara had claimed that the Corporate Affairs Ministry had parted with it saying that it had alone jurisdiction to analyze the company on this issue. The exhalations changed in Sebi's benignity when the minister changed. Now the courts are also behind the controller. In full page advertizing taken out in leading dailies on Sunday and Monday, disputable chief managing worker of Sahara India Pariwar, Subrata Roy Sahara has openly challenged the Sebi chairman or any of the controller's senior officials to face-off with him on live national telecast. The latest crusade began after Sebi inquired the Supreme Court to order the arrest of Roy and a few directors in his organization.
Roy wants to argument with Sebi how, with malafide intentions, it is hard to destruct Sahara's reputation, clean image and goodwill. Though he has queried Sebi's intention in going after Sahara, Roy has granted a clean chit to the courts and has thoughtfully not requested that anyone from the judiciary link issue with him on live television. When Sahara was first questioned by Sebi in 2010, it had argued that it does not have legal power over the debenture sale because it was a private arrangement. The regulator had then noted Section 67 of the Act to establish legal power.
Ever since it get down investigating Sahara, it has ellipse around just one issue as the ownership of the money that Sahara gathered and the individuality of the investors. While Sahara says that its army of workers cognize where precisely each of them lives, it is not amazed the postman cannot find them because they are too poor and often live by the boundary of national highways in temporary hovels. Nice try, but Sebi is not believing and it is now back in Supreme Court.
- Artists Lose Copyright Lawsuit with National Gallery, March 12, 2013 :
Canada's 20,000 visual artists have been exploit with a legal body impact in a landmark court judgment that efficaciously bans them from passing minimum display and other copyright-related charges with the National Gallery of Canada. The Federal Court of Appeal judgment applies only to government institutions, but an interpreter for the artists' association that demanded the National Gallery over the fees says it has the likely to affect financial plannings between artists and galleries across the nation.
Canadian Artists Representation (CARFAC) and its Quebec partner, Le Regroupement des artistes en arts visuels du Québec (RAAV), were trying to talk over a legally-binding minimum copyright regulation with the gallery for use of artists' work, including display fees and a work's use in catalogues, postcards or other commodity. The lawfully-binding minimum fee would have been a basic for Canadian artists and galleries. When the gallery scrapped to talk over copyright, CARFAC asked to the now-defunct Canadian Artists and Producers Professional Relations Tribunal, which ruled that the federal Crown corporation had purchased in bad belief. The art gallery yielded its case to the Federal Court of Appeal and won in a two-to-one judgment.
"The intention of our negotiations was to amend the working conditions the art gallery offers to artists and aid us put some regulations in place to make sure artists aren't pressured to accept less than what they be," said CARFAC executive director April Britski. "We are manifestly disappointed that this has been upended."
"We haven't lost anything with this judgment but we haven't increased and that was what we were looking for," said Britski. "CARFAC has been negotiating fees for 45 years but they are all willful. Sometimes artists are bestowed less and sometimes get nothing. We haven't increased a betterment to that."
In a statement, the gallery said it was "very happy" with the opinion that "confirmed the gallery had agreement in good faith." Still, it's probably that more legal elucidation will be needed. Britski said Tuesday that CARFAC is thinking for a final plea to the Supreme Court of Canada.
- Railways Looking For Private Investments in Constructing Rail Infrastructure, March 02, 2013 :
Railways promote private investments in structure rail infrastructure. A new policy for constructing and transformation rail link and capacity boost has freshly been stated. Some of the other fields where railways advance private investments are development of Private Freight Terminals, Procurement and Leasing of Wagons, Works of container trains, renovation of stations, Loco & Coach manufacturing units etc. Railways have enforced are in procedure of carrying out seven projects thought Joint Venture routs and connectivity to Mundra Port has been accredited through with pure private funding.
Given the immense throw-forward of current projects for which the current day coast places at Rs. 1.47 lakh crore, State Governments (including state Government of Odisha) and other recipients have been requested to come forward for an entire 35 railway projects.
In addition to higher resources mobilization through with internal generation, gain in resources through with extra-budgetary measures is being attempted for raising the pace of development of all current projects, including those in Odisha. Prioritization of plans has also been done to change optimal usage of limited resources and for easing smooth flow of funds to the projects marked for completion. The dead time frame for completion of projects cannot be forecasted as the advancement is dependent on accessibility of resources.
- TCS Places Lawsuit By Ex-Employees In US, February 27, 2013 :
Country's biggest software organization TCS has agreed to settle a suit filed by two former employees asserting infringement of the rights of its non-US citizen employees in the US, accordingly for $30 million. Highlighting that the US Court has recovered no wrongful conduct by the company, TCS said it "believes that it always acted fittingly nevertheless the allegement in this case."
However, it did not bring out details of the agreement. "The company has admitted no wrongful conduct and none has been recovered by the court. It agreed to put this matter to eliminate any on-going distraction to its associates and management," a TCS representative said.
The legal proceeding was filed in 2006 by two of TCS' old employees, Gopi Vedachalam and Kangana Beri. The lawsuit supposed that the company unjustly improved itself by requiring all of its non-US citizen employees to support and sign over their federal and state tax repayment checks, among others.
- UK Looks for Ease Limitations on FDI in India, February 18, 2013 :
The UK government has pointed that it expects to talk over a increase of limitations on investment in India. Talking from the Mumbai offices of consumer goods leading Unilever, UK Prime Minister David Cameron said to reporters there should be "a conversation about beginning up the Indian economic system, making it softer to do trade here".
Reported to Sky News, Cameron detailed on the insurance and banking sectors as areas he desired to push for a liberalization of foreign direct investment in the nation. However, an easing of limitations could have a momentous impact on Indian FDI retail limitations. Currently, Indian politicians are in the procedure of relaxing retail investment limitations and lately introduced proposals letting foreign companies to own up to 51% of multi-brand retail businesses.
A representative for UK retail leading Tesco hinted that the group could possibly step-up investment in the location if conditions become more pleasing. "We have greeted moves in India to let foreign investment in multi-brand retail and proceed to review the conditions. We already have a flourishing franchise arrangement with Tata's Star Bazaar sales outlet and we are anticipative that this development will permit more Indian consumers, businesses and communities to profit from world-class retail investment."
- FDI Going Away China for India, Asean, February 11, 2013 :
India and Asean are tipped to advantage from China's endeavour to maintain foreign direct investors (FDIs) in the nation, reported to the China-Asean Business Council Chinese Secretariat. Noting a report from The International Business Times, the commerce body, through with its newsletter, said that China has been the leading acquirer of foreign direct investment in the developing universe over the past 20 years.
This has showed a big part in China's outgrowth from being a poor rural region to an economical powerhouse, but emerging costs due to higher wages and the forming out of super-preferential tax policies are pushing multinationals, chiefly labor-effort manufacturers, to move, it added.
"And China's neighbors India and Southeast Asian countries position to benefit the almost as they have big pools of labor and powerful domestic markets," the report declared.
Robert Atkinson, the President of the Information Technology and Innovation Foundation in the US, was excerpted in the report as saying that "the Chinese marketplace on foreign direct manufacturing investing is terminated".
A new report issued by the United Nations Conference on Trade and Development (Unctad) displayed that worldwide FDI inflows fell by 18 per cent to an approximation $1.3 trillion, down from an amended $1.6 trillion in 2011, the trade body stated. This was owed mainly to macroeconomic weakness and policy dubiety among capitalists, it added.
By Unctad's standard, China was still the second biggest receiver of FDI in the world after the US, but assets is always searching for the advanced return possible, it added. Although many countries can now contend with China on labour costs, it is countries elsewhere in Asia, which are capable to take reward of strong infrastructure and alive supply chain networks, that will be the primary beneficiaries of China's move out of low-end manufacturing, an Asia expert at Capital Economics, Gareth Leather, was excerpted as saying.
- Ambivalence on FDI Should Stop to Urging Development, February 10, 2013 :
Growth is a word that is ambient to the hearts of numerous policymakers in the Capital, peculiarly the North Block mandarins. For, it is the advanced economic growth and strong macro-economic basics that would aid hold foreign investor interest in the Indian economic system, particularly when global economic situation is not all that bang-up. But the Central Statistics Office's advance estimation of five per cent GDP development for 2012-13 came as a surprise not just to the markets, but also to the Finance Ministry.
Subsequently a long time, the CSO and the Finance Ministry were not on the same leaf. The explanation is not far to perceive. At a time when the Finance Ministry is incisive to promote more capital inflows, a five per cent GDP growing is liable to conquer the investment sentiment.
The Finance Ministry readily went on a harm control exercise and wanted to punch some holes in the CSO projections — that it is founded on past data and does not element in the signs of upturn seen in the economy since November last year. For his part, Chief Statistician of India T.C.A. Anant, whose Ministry is in pleading of the CSO, stuck to the five per cent prevision, stating that it was based on the methodology appointed by the National Account Estimates. Past data can always have a supporting on the prevision, especially if there is an alteration in trend. But we cannot do all things about the methodology, Anant has reportedly said.
But the arguable point is a five per cent GDP development or even 5.5 per cent GDP growth is far below possible for a country such as India. This is something that is well accepted even in the corridors of power and jointed by Chief Economic Advisor Raghuram Rajan. So what should India do to bring to maturation and sustain foreign investor curiosity in this market?
One thing it can do is to withdraw its ambivalence towards foreign direct investment (FDI). MIT Sloan Management School's Dean , S. P. Kothari, who was in Delhi a few days earlier for a conference, had an idea that the policymakers would do well to go.
- FDI inflows can grow ten-fold, onus on govt to get that done: Experts, February 07, 2013 :
Foreign investors distinguish marvelous growth possibilities in India and can instill here FDI worth about USD 250 billion a year, but they want a pledge for an innovative and investment friendly policy model, a top management guru has said.
"If we wish to take the FDI from the current USD 20-30 billion to about USD 250 billion a year, the capitalists making this investment would require to see the growth that has been made to assure him growth," MIT Sloan School of Management's Deputy Dean S P Kothari told.
"The investors would inquire for a policy framework that is innovative and investment friendly," Kothari said here in the lead of Citi-MIT Sloan Symposium. Talking about India's growth prospective, Pankaj Vaish, MD and Head of Markets at Citi South Asia, said that India can consider of increasing FDI to over ten times of the actual level.
"It is not simply about the foreign money, but the access the money turns in terms of finer products and services. FDI worth USD 25 billion is great, but small when analyzed to the size and possibility of India. Our goal should be 8-10 times of the present-day level of FDI investment," Vaish said.
"I believe we should purpose for 20 uninterrupted years of about 10 per cent GDP growth. It should be our resolved goal as a nation," he added. Kothari said that there is an enormous enchantment about India among the global investors. "India offers many opportunities for rest of the world, the first and best being its huge talent pool that is one of the top-grade in the world and very well trained," he said.
"Those who believe of India as an investment end, also believe of these benefits. When they taste india, they say it is fantastic in terms of development opportunities on many magnitudes," Kothari said. "India has made outstanding paces in becoming more open and more capitalist friendly, but there still remains areas where advance has not been of coveted levels," Kothari said. "India needs to display that it has get over the hurdles and there would not be obstacles for the investments being affianced, as what we are speaking about is an investment of USD 200-250 per individual," he added.
- Intellectual Property Meet Hosted By Birla Institute of Technology Patna, February 6, 2013 :
The value of patents for business houses to avert litigation was emphasized by S K Jain, department of management studies, IIT Delhi, at a workshop on "Intellectual Property Rights" (IPR) arranged at the Birla Institute of Technology Patna (BITP) on Wednesday.
The resource person lighted the divergence between copyrights and patents and explicated trademarks and trademark offense to the faculty members of BITP and other institutions, consisting BIT Deoghar, Admerit, Cybotech Campus, Chanakya National Law University and Patna University. "Indian patents journals are publicized each Friday with an objection period of three months," said Jain and also informed the patent policy of other nations.
Patna Central School will manage a "Science cum food festival" on their school premises on Thursday. The fest would be start up by Acharyasri Sudarshanji Maharaj while the guest of honour list considers A K Sinha, principal, Patna Science College, Dr N P Yadav, principal, PMCH, A K Yadav, deputy director, medical education, Bihar, and Dr D K Singh, former principal, Patna Dental College.
- Workship on 'Impact of FDI in India' in Mangalore, February 4, 2013 :
FDI is an accept step in a developing nation like India, said Anand K, Associate President of Udayavani. Speaking after opening a workshop on "Impact of FDI in India" arranged by the Shree Bharathi College on February 3, Sunday, he said even the discernment which people had a decade ago due to the beginning up of FDI had proved incorrect.
GN Bhat, Principal of the College, who controlled over the purpose said though FDI may not do too much of damage, it may very influence the society to some degree.
Y V Bhat, Secretary of Shree Bharathi Group of Institutions spoke in full assistance of the letting of FDI in retail sector and said such a move was necessary in order to help India compete efficaciously with other nations.
There were two technical sessions as a portion of the workshop. Dr Narayana Kayarkatte, Dr T Jayaprakash Rao, Dr Anjali Ganesh and some other spoke.
- India Agrees For 4 FDI Proposals Worth of Rs 280 Crore, Jan 29, 2013 :
The Finance Minister has approved four proposals of foreign direct investment totaling of Rs 280 crore, which includes IT giant Wipro, settled on testimonial of Foreign Investment Promotion Board (FIPB). The proposal of Wipro Ltd., Bangalore, for movement of shares by way of barter resulting to a deuniting of non-IT activities was authorized.
Likewise, IvyCap Ventures Trust has been permitted NRI investment of Rs.200 crore through average banking channels in compliance with Foreign Exchange Management Act (FEMA) Regulations and the existing FDI Policy. The FIPB has also absolved the Rs.80 crore proposal of Spanco Power Distribution Ltd. to act as an investing company and build downstream investments in power arrangement sector.
However, FIPB postponed the proposal of Yalamanchili Software Export Ltd. for transition of non-repatriable stake held by majority shareholder to repatriable stake and share trade of this holding to shares of a foreign company. Last week, the nodal agency had absolved Rs.10,000 crore investment proposal of Swedish furniture leading IKEA to launch retail stores in the country with cafeteria. It previously okayed IKEA to spend Rs.4,200 crore for launching single-brand retail stores.
- FDI Ban from Retail E-Commerce To Be Removed, Says Assocham, Jan 27, 2013 :
Industry body Assocham has inquired the government to withdraw the ban on foreign direct investment in retail e-commerce business. DS Rawat, Assocham secretary general, has written to Telecom and IT minister Kapil Sibal looking for his support in take off current limitation on Business-to-Consumer (B2C) e-commerce.
As per the existing standards, e-commerce companies involved in business-to-business trade, like marketing materials or bulk good to business firms are permitted to drill up to 100 per cent FDI in their company. In December 2012, a major Indian e-commerce firm had come under reviewer of enforcement directorate for supposed offense of the present FDI norms. Rawat said that figured revenue from this sector is likely to be about $15 billion by 2015 and can lead to broader reach of farmers and other domestic merchandise firms, helping them recognize better worth of their products.
Besides, consumers will have maximum choices still in the farthest locations of the nation. Rawat mentioned the example of China, which has permitted over 500 Chinese companies to trade good through global websites. "It does not make ambivalency with small retailers and kirana shops," he said.
Rawat said that FDI allow in B2C e-commerce part will draw investment in back-end infrastructure of companies in country which in turn will make multiple job opportunities. "Customer care, IT and IT modified services, warehousing... administration for e-commerce have been reckoned to create over 1 million extra jobs by 2021," he added.
- FDI: Chemists' meet to focus on challenges, January 23, 2013 :
Chemists in the nation are set to ready themselves to uphold with the dynamic market forces that they expect seeing in the near coming day. To talk about the ways to do this, they have re-formed a meeting that will be held in the city on January 27.
Around 10,000 chemists and druggists are likely to go to the convention that will also perceive the Maharashtra State Chemists and Druggists Association (MSCDA) develop 'Vision 2020'. This will dwell of a set of rules that would aid chemists look the future challenges of their job bearing in mind the increased competition, business step-up and ways to help customers pick out rightly priced medicines.
"With the influences of FDI blowing through with the country, it looks finer to be prepared for it kinda than being blown away by it. So, our president Jagannath Shinde determined to hold discussions on the topic during this group meeting," said Mukund Dubey, president of Nagpur zone of MSCDA.
"Running a shop aboard a retail chain will take us to supply certain facilities to customers. That is why we have idea of an 'M+M' (medicine and more) shoppe model. In the approaching year, we intention to have 500 such shoppes around the state," said Anil Nawandar, secretary of MSCDA. A framework of this model shoppee would be commenced during the meeting, he said.
There would be a programme throughout the convention known as 'A dialogue with the pharmacist' that would teach the chemists just about the way they should treat with customers. In order to make these casual rules more significant, a pamphlet with a collection of these rules will be distributed among the members. Also, there would be an exposition gallery which would give applicable tips to chemists about bring off their businesses better and spread out them.
- FDI's Sixth Edition Policy Will Appear Till March End, January 20, 2013 :
The sixth edition of the strengthened FDI policy will be issued by the Department of Industrial Policy and Promotion (DIPP) on March 31 which will integrate all the revolutionizes made in the system over the past one year.
"The next edition of the strengthened FDI Policy Circular is programmed to be released on March 31, 2013, and will be efficient from April 1," the Department of Industrial Policy and Promotion (DIPP) said. The DIPP is the nodal agency on FDI associated matters. With a vision to create India's FDI rule simple and easy to recognize for investors, the department had assembled all the allied policies into a single document. The DIPP has requested public comments on the document by tomorrow.
Foreign direct investment (FDI) is measured decisive for economic development of a country and India has taken quite a few steps to draw such funds. The government has permitted FDI in multi-brand retail, power exchanges and increased FDI limit in single brand retail and broadcasting.
In the first 10 months of present financial year, foreign direct investment (FDI) dealt by 33 per cent to $21 billion as in opposition to $31 billion in the similar period last year due to the worldwide economic uncertainties.
- FDI in Insurance Has Refused by Parliamentary Standing Committee, January 17, 2013 :
The offer to increase the limit of foreign direct investment to 49% has been refused by the Parliamentary Standing Committee on Finance. Talking to media following an IMC event, Yashwant Sinha said that Adjustments to the Bill is fixed on only one matter on foreign direct investment. Also, the government's indisposition to make out to opposition is holding back the revision.
"The government is not talking about it with us," he said. "The insurance Bill regrettably is fixed on only one topic on whether FDI should be 26% or 49%. It is likely to have a way out. We will inform the government when they attain out to us. The proposal of advanced FII has not find passions with foreign players, who are partners in India."
The Cabinet permitted revisions to the Insurance Laws, Bill, 2008, including higher FDI of 49% while the standing committee on finance had against any raise in FDI limits. . It is expected to be taken up by Parliament for passage in the approaching Budget Session. The bill was first brought in Rajya Sabha in December 2008 offers to boost the foreign direct investment (FDI) limit in the cover sector to 49 per cent.
Higher foreign institutional investors in insurance companies would not resolve the capital problems of sector. Though, it would lend a hand some big companies to temper stake throughout the public listing.
- India Should to Step Carefully While Inviting FDI: Joseph Stiglitz, January 15, 2013 :
Nobel laureate Professor Joseph E Stiglitz has said that India ought to be very watchful whereas inviting Foreign Direct Investment (FDI) in the multi-brand retail sector as a few foreign firms are renowned for their poor labor relations, worker misuse, inequity and bribery.
Conveying ADRI Foundation Lecture in Patna on Monday, Stiglitz said, "In retail, there is already an affluence of entrepreneurial ability in India and there are affirmations that carrying in foreign retail firms will get better the supply chain and develop the welfare of farmers, producers and consumers".
He said that some firms, yet, have not an excellent track record on labor affairs and therefore it should be charges whether these foreign firms have delivered the proposed benefits to the host countries. Still in the financial markets, there is no proof that opening up markets to chancy financial products will perk up growth and there is plentiful confirmation that it will raise risk.
The Noble laureate said that Bihar has established that change is possible and possibilities of development are massive. He said that Government mechanism could be an imperative tool for promoting growth and Bihar has thoroughly proved it. "Bihar's success has given a ray of optimism for all those struggling to grow," he remarked. The economist said that one must not take such accomplishment for granted as the prompt growth needs constant efforts.
- Foreign Telecom Companies Against of New FDI BAR, Jan 14, 2013 :
A move by the government to create foreign direct investment (FDI) policy more severe in the telecom sector has elevated hackles amid global companies.
The department of telecommunications (DoT), regarding the draft common licence procedure to be signed with telcos which freshly won spectrum in the 1800 MHz auction of November, has integrated a new section for foreign companies. It says, "In order to make sure that at least one grave resident Indian promoter subscribes rational amount of the resident Indian shareholding, such resident Indian shareholder shall grasp at least 10 per cent equity of the licence corporation."
This could have serious impacts on all foreign telcos, counting new ones such as Telenor and presents wanting to drift to a universal licence, under which telcos can work all services. They would currently have to discover an Indian investor who will hang about invested, even if the foreign company favors to strip stake through a public offering and wrap the 26 per cent Indian equity requirement soon after.
A top DoT official, who did not want to be publicized, confirmed that the clause was integrated to make sure the serious Indian shareholding in foreign telcos working in the countries. However, proposals made by the Telecom Regulatory Authority of India on UL guidelines, scheduled January 2, do not take in the clause.
Norwegian giant Telenor's Indian subordinate Telewings Communications, which has queried the move, has supposed as the clause was distant and is not there in the FDI policy on telecom, its reintroduction lacks a rational or authoritarian basis. The company just won spectrum in 1800 MHz in six circles and finished an Rs 1,326-crore frank payment. Telenor did not reply to questions from Business Standard. Telenor has told the government the shift would inflict difficult barriers on foreign telcos, as they have to discover an Indian sponsor who is all set to hold up to 10 per cent at all times, and at a time when the last lack craving to invest in the sector. And, it makes no intelligence if the company chooses to list the company and go public.
A top managerial of a leading foreign incumbent telco adds, "There is no such clause in our contracts. But if this is compulsory, serving operators will not drift to the UL at all. And, it will generate a non-level playing field another time."
- India Finally Approves Rs 1311 Crore FDI Proposals, Jan 11, 2013 :
The Finance Ministry announced that Indian government on Friday agreed 14 foreign direct investment (FDI) proposals value of around Rs 1,310.60 crore, as well as that of Hindustan Port Ltd, based on the proposals of the Foreign Investment Promotion Board (FIPB).
The proposal of Hindustan Port Ltd. to carry in Rs 440 crore for venture in downstream companies was amongst those cleared by FIPB. The FIPB, directed by Economic Affairs Secretary Arvind Mayaram, has also permitted pharma firm Aanhaneya Lifecare to elevate funds worth Rs 405 crore by releasing foreign currency exchangeable bonds.
In addition, the board has allowed Syngene International to introduce foreign equity of Rs 125 crore. US-based Gavis Pharma LLC can also endow Rs 73.75 crore in an Indian company occupied in the business of production of injectable products. Other major schemes which were agreed by the FIPB include Excedo Reality Fund-I to allow NRI investment worth Rs 210 crore, and that of pharma company Saurav Chemicals Ltd to release fresh equity shares valued Rs.14.85 crore to overseas company. Other proposals approved contain that of Ordain HealthCare Global for attainment of manufacturing service for its group pharma company and that of Arshiya International to release warrants.
FIPB has delayed six and abandoned three proposals, which include Mahindra & Mahindra Ltd to offer service prop up for radar systems and defence electronic systems. The abandoned proposal includes Mumbai-based Fullife Healthcare for initiation of foreign equity.
- Air India Revealed Anxious over FDI in Aviation, Jan 10, 2013 :
Air India has notified the government that agreeing to investments by foreign airlines will wound the interests of domestic airlines and prevent Indian airports from rising into global hubs. The government ought to learn the likely shock of such investment on the domestic aviation sector as an intact, chairman and managing director (CMD) Rohit Nandan noted down in a letter to aviation secretary K.N. Srivastava in December, as per the two government officials, who refused to be named.
Nandan's letter has provoked the aviation ministry to begin work on setting up guidelines to talk to the concerns, but it is indistinct how far it can go further than clearing investments by overseas airlines in domestic ones on a case-by-case basis, one of the two officials said. The guidelines are expected to be ready in a few weeks' time. India in September permitted foreign airlines to make personal to a 49% stake in local airlines, accepting a demand by cash-strapped domestic airlines to aid shore up their capital and lessen debt.
Nandan wrote in his letter to Srivastava that the opened FDI policy could harm local airlines because abroad airlines may decide to use Indian airlines primarily as feeder services for their personal operations, said the official quoted above. The department of industrial policy and promotion has inquired the aviation ministry to get ready sectorial limits, but "we don't recognize what could be done", said the second official. "Maybe we will get them on a case-by-case basis," he said, referring to investments by overseas airlines in India.
Air India has basis to be concerned about it's privately run opponents getting an improvement from foreign airline investments that could weaken its own competitive border. Troubled by high liability and other operational hassles, the nationalized firm is relying on a taxpayer-funded $5.8 billion bailout to keep on in business. An instant risk is the possible Jet-Etihad deal.
"Most of the countries that agree to foreign carrier investments in domestic airlines are countries with firm capitalistic ideals and practices. It is the endurance of the fittest," said Steve Forte, former chief executive at Jet Airways.
- FDI in Retail will Boost Indian Economy, Says Nobel Laureate, Jan 9, 2013 :
Supporting foreign direct investment (FDI) in multi-brand retail in India, Nobel laureate economist James Mirrlees on Tuesday told that starting up of the sector to global companies is likely to perk up the country's financial system.
"Yes, that is my supposition," Mirrlees said to questions whether the government's decision to agree to FDI in multi-brand retail would aid the Indian economy carry out better.
Watching that opening up of the sector to the universal retail giants would take in more value-addition, the Britain-based Scottish economist said that "It appears to me that the Indian consumers are hop to advantage from it."
Mirrlees, however, accepted that little shop keepers will possibly face a little difficulty after the foreign retailers were permitted to open stores in India.
The famous economist, winner of the 1996 Nobel Prize, is at present the emeritus professor of political economy at the University of Cambridge.
- Havells India Look to Renew Trademark Licence Pact, January 7, 2013 :
Havells India is trading advanced by 3% to Rs 653 after electric tools and product manufacturer said that it has gone into a revised trademark license agreement with one of its advertiser companies QRG Enterprises, which possess the brand name/trademark Havells'.
"QRG Enterprises Ltd, one of the company's promoter, which also have the brand name/trademark 'Havells', has gone through a revised trademark license agreement with the corporation pursuant to which the brand will be moved to the company for no reflection with consequence from April 01, 2016," Havells India said in an announcement.
The presented trademark license agreement amongst the companies is going to expire in fiscal year 2015-16, it added. Havells India Limited is a $1.3 billion most important fast stirring electrical goods (FMEG) company and a key power distribution tools manufacturer with a strong universal footprint. It has 10 manufacturing services in India in different states, including Himachal Pradesh, Uttar Pradesh and Rajasthan.
The stock has opened at Rs 639 and tapped high of Rs 657 on the NSE. A joint 59,488 shares have tainted hands on oppose so far on both the exchanges.
- Delhi NCR, Maharashtra Draw FDI in India over 50 Percent, January 6, 2013 :
Delhi, National Capital Region and Maharashtra have spotted foreign direct investment over 50 percent inflows in to the nation since April 2000, according to data of Industry Ministry. During April 2000 and October 2012, Maharashtra were drawing attention of maximum foreign inflows $61.13 billion, about 33 percent of total FDI inflows.
National Capital Region of Delhi as well areas of Uttar Pradesh and Haryana have obtained $35.4 billion fdi during the same period. NCR is liable for total 19 percent fdi in country and India obtained $185.7 billion foreign returning, the industry data says.The experts says that the key reason for the highest inflows into Maharashtra and NCR is generous upgrading mainly in the infrastructure and positive of the own governments.
"Infrastructure in these areas has enhanced very much and that is building them nice-looking destination for foreign investment," an administrator said. Sectors, which fascinated greatest FDI, take in services, telecommunication, metallurgical industries, power, computer hardware and software, and construction actions. The maximum FDI of $70.9 billion appeared from Mauritius pursued by Singapore ($18.4 billion), UK ($17 billion), Japan ($13.83 billion) and the US ($10.8 billion) through April 2000 and October 2012.
The government is making nonstop attempts to create the FDI policy regime smarter and investor pleasant, with a view to attract investments from all key investing nations. The government had eased up FDI policy in several imperative sectors like multi-brand retail, aviation, power exchanges and broadcasting. During April-October this financial, India has engrossed FDI worth $14.7 billion as aligned with $25.3 billion in the same phase last year.
- India Lost What over FDI, January 2, 2013 :
Nowadays, India's higher education segment is one of the major in the world. There is a marvelous development of private institutions and professional learning, mainly in management and engineering courses. To improve the parameters of excellence of higher education, it is necessary to build both strong competition and teamwork amongst the higher education institutions in India and overseas. The Foreign Educational Institutions (FEI) Bill would have been the influential means to get this key goal of higher education but India fails to spot this chance because of the bill being postponed.
When the FEI Bill was brought in Parliament in 2010, many foreign institutes/universities such as Massachusetts Institute of Technology, Schulich School of Business, Yale University, Columbia University, University of Southern California, Virginia Tech, University of Alabama and Middlesex University were eager on establishing campuses in India.
India's young inhabitants and mounting economy more acted as channel for foreign universities of ageing countries to make stronger their brand in India throughout setting up campuses and also employing top students to their home campuses. Due to ambiguity over the bill, today, so many universities who first proved an interest might have moved left to other preferable destinations. Since the bill has not been passed the same fraction of student community will carry on going abroad for higher education.
With the Bill yet pending in the parliament, the UGC permitted new regulations in June, which only permits those foreign institutions that form in the top 500 of global ranking by Times Higher Education World University Ranking and such. To build buoyancy, it is vital to have a broad bill as an alternative of simply having UGC regulation to draw the best foreign universities to the country. If India is to come out as a global learning hub and standard quality in higher education, it must focus on internationalization and value research.
- FOREIGN INVESTMENT IN INDIA - PENSION SECTOR
The Indian government in continuation of its economics reforms decision has proposed the foreign direct investment ("FDI") to the extent of 49% in insurance sector besides opening the pension sector for FDI on par with the insurance sector.
- FOREIGN INVESTMENT IN MULTI-BRAND PRODUCT RETAIL TRADING & INDIA AIRLINES
The Indian government has on 20 September 2012 opened more sectors for foreign direct investment ("FDI") especially multi-brand product retail trading and foreign investment in Indian airlines by foreign airlines.
- INDIAN ARBITRATION LAW - SUPREME COURT IMPLEMENTS UNCITRAL MODEL LAW
Recently, on September 6, 2012, the five members constitutional bench of the Indian supreme court ("Supreme Court") in 'Bharat Aluminum Co. Vs. Kaiser Aluminium Technical Service Inc.2 ("Balco Judgment")' after reconsidering its various previous decisions on the Indian Arbitration & Conciliation Act 1996 ("Indian Arbitration Act")
- INDIAN SUBSIDIARY OF FOREIGN PUBLIC COMPANIES - A CRITICAL ANALYSIS
India has vast untapped potentials for foreign companies looking for expansion/investment opportunities. Usually, foreign companies start their Indian operations by setting up a liaison (representative) office in India.
- ADVERTISING AND MARKETING LAW INDIA
At present in India, there is no central statutory agency or uniform legislation regulating the advertising industry. The Indian advertising market as a whole is regulated and controlled by a non-statutory body, the Advertising Standards Council of India (ASCI).