Government to widen entry for foreign funds while shuttering FIPB

Source: The Economic Times, Apr 20, 2017

NEW DELHI: The proposed dismantling of Foreign Investment Promotion Board, which vets proposals involving fund inflows from overseas, is likely to be bundled with related policy reforms.

On top of the list is doing away with prior government approval for investments in most sectors, including single-brand retail, which could see dilution of the 30% domestic sourcing clause.

“Contours of the proposed changes to the foreign direct investment policy are almost ready… Non-strategic sectors should be on automatic,” said a senior government official privy to discussions on the matter. Read the rest of this entry »

India jumps to 8th place on Global FDI Confidence Index

Source: The Economic Times, Apr 19, 2017

NEW DELHI: India has jumped one spot to 8th rank in the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index. Governance and regulatory issues made up 7 of the top-10 factors that investors consider when deciding on an investment destination according to the report. Last year factors such as domestic market size and cost of labour were the top issues for investors.

India’s reforms to enable a ‘transparent’ and an ‘easy’ business environment, have made it an attractive destination for foreign companies, the AT Kearney report said.

While US topped the list, Germany and China were at the second and third respectively. United Kingdom and Canada make up the rest of top 5. Read the rest of this entry »

Government may soon allow 100% FDI in cash, ATM management companies

Source: The Economic Times, Apr 16, 2017

NEW DELHI: Cash and ATM management companies will soon be allowed to attract 100 per cent foreign direct investment as they are not required to comply with the Private Security Agencies (Regulation) Act (PSARA).

A clarification to this effect is likely to be issued by the home ministry shortly.

The clarification will be against the backdrop of the confusion among firms in cash and ATM management relating to compliance with the Act, under which they can receive FDI only up to 49 per cent. Read the rest of this entry »

No proposal to review FDI in multi-brand retail: Govt

Source: Business Standard, Apr 10, 2017

The government on Monday said there is no proposal under its consideration to review the foreign direct investment (FDI) policy in the multi-brand retail sector.

“No proposal is under consideration of the government to review the extant FDI policy on multi-brand retail,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.The current FDI policy permits overseas players to hold 51 per cent stake in an Indian retail company.

So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy. Replying to a separate question, she said that government has been interacting with investors to identify issues for promoting FDI in the food processing sector.

Read the rest of this entry »

Govt may allow 100 per cent FDI in insurance broking to attract more funds

Source: Business Standard, Mar 21, 2017

New Delhi: The government is considering allowing 100 per cent foreign direct investment in insurance broking with a view to giving a boost to the sector and attracting more funds.

The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector that encompasses insurance broking, insurance companies, third party administrators, surveyors and loss assessors as defined by the Department of Industrial Policy and Promotion.

An official said that representations have been made to the government that insurance brokers should be treated at par with other financial services intermediaries, where 100 per cent FDI is permitted.

Read the rest of this entry »

Govt is working on ‘appropriate policies’ for 100% FDI in airline

Source: Business Standard, Mar 15, 2017

New Delhi: Union Minister Jayant Sinha on Wednesday said the government is working on “appropriate policies” related to 100 per cent FDI in airlines, amid local carriers opposing the move.

The Minister of State for Civil Aviation also said the Ministry has not yet received any formal application from any airline with respect to 100 per cent FDI.

index.jpg

His remarks come against the backdrop of Qatar Airways recently announcing its plans to set up an airline in India after the Indian government allowed 100 per cent foreign direct investment in the airlines segment last year.The Federation of Indian Airlines (FIA) — comprising Jet Airways, SpiceJet, IndiGo and GoAir — have been vociferous about their opposition to foreign entities being allowed to invest in local carriers.

Read the rest of this entry »

Government looking at more FDI reforms; relief for investors in defence, telecom and broadcasting

index.jpgSource: The Economic Times, Mar 03, 2017

NEW DELHI: India is set to make further changes in its overseas investment regime, scrapping the need for approvals in sectors where licences are also required, such as defence, telecom and broadcasting, eliminating one layer completely from the process.

“Clearance for FDI (foreign direct investment) separately after securing a licence adds another layer of approval from same authorities,” said a senior government official. “Anyone who has gone through one level of scrutiny for licence from the authorities concerned should not need to go through the same checks again.”

Conditions related to FDI can be examined by the licensing authority, the person said. A big-ticket defence order expected to be floated soon should make quick progress once these changes are effected.

Read the rest of this entry »

Posted in Laws & regulations in India. Tags: , . Comments Off on Government looking at more FDI reforms; relief for investors in defence, telecom and broadcasting