Other Briefings
India’s Registrar of Companies to Issue Certificates by Digital Signature
May 23 – The Ministry of Corporate Affairs in India has issued a new circular kick starting the “Green Initiative in Corporate Governance” by allowing companies to complete electronic, paperless compliance after considering relevant sections of the Information Technology Act (2000) and the Companies Act (1956).
RBI Liberalizes Opening of Escrow Accounts for FDI Transactions
May 16 – In order to support foreign direct investment into India, the RBI has loosened up the rules and now permits foreign investors to raise funds by pledging shares of Indian companies to banks without its authorization. The Reserve Bank of India has liberalized the opening of escrow accounts for foreign direct investment transactions […]
Escrow Mechanism
May 10 – The Reserve Bank of India (RBI) has allowed AD Category – I Banks (AD Banks) to permit assurance of shares of an Indian company seized by non-residents subject to under the following situation: Assurance in favor of Indian banks in India Reason: Shares may be assured to secure credit facilities comprehensive to […]
Local DIN Holders in India Need to Submit PAN
May 9 – Earlier, India’s permanent account number (PAN) system was not the mandatory field for directors identification number DIN-1 eForm. So in order to avoid Duplicate DIN, it has been decided that all the DIN holders who have not furnished their PAN earlier at the time of obtaining DIN, are required to furnish their […]
Newer, Faster Approval Procedure for Businesses Underway
India will soon have a system in place that will simplify the process of approval for business projects, according to a government official. It will not only encourage investors to invest in India but also young entrepreneurs to start up their own businesses.
India Allows 100% FDI in Several Key Sectors
Apr. 7 – India’s Department of Industrial Policy and Promotion has released the “Consolidated FDI Policy – Circular 1 of 2011,” that will allow 100 percent FDI in the development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions. Furthermore, animal husbandry (including the of breeding […]
Changes on Pricing of Convertible Instruments
Apr. 6 – Companies are now free to lay down a formula to transform convertible instruments (like debentures, partly paid shares, preferential shares and the like) into equity in accordance with the guidelines of FEMA and SEBI. India’s Department of Industrial Policy of Promotion has also relaxed the rules and regulations for convertible instruments to […]
India Releases Third Consolidated FDI Policy
Removal of the condition of prior approval with reference to existing joint ventures/technical collaborations in the same sector Apr. 5 – In an updated foreign direct investment policy, the government of India stated a simplification of joint venture norms and opened up new areas for overseas funds. In a milestone decision, the government eased regulations […]
