HDFC Bank gets capital adequacy boost with Cabinet nod for Rs 240 bn FDI

download (2).jpgSource: Business Standard, Jun 13, 2018

In a move that is likely to make a marked improvement in HDFC Bank’s capital adequacy ratio, the Union Cabinet on Wednesday approved a proposal for foreign direct investment (FDI) worth Rs 240 billion for the lender.

The Cabinet has also approved a law for safety of dams, and has okayed the setting up of a National Committee for the purpose. State level committees will also be set up to oversee laws on dam safety at the state level.

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Govt counters UN report on fall in FDI, claims it rose to $61.96 bn in FY18

Source: Business Standard, Jun 09, 2018

New Delhi: Two days after a report by the United Nations Conference On Trade and Development (UNCTAD) showed that foreign direct investments into India fell by $4.5 billion in 2017, the government on Friday pointed to latest statistics to say that FDI has actually risen.

Addressing the media on four years of the Modi government, Ramesh Abhishek, Secretary at the Department of Industrial Policy and Promotion (DIPP) pointed out that FDI rose to $61.96 billion in 2017-18 from $60.08 billion the year before. FDI in the first four years of the Narendra Modi government rose to $222.75 billion from $152 billion in the previous four years, Abhishek added.

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FDI inflows to India decline by $4 bn in 2017

Source: Business Standard, Jun 07, 2018

New Delhi: Foreign Direct Investment (FDI) to India declined to $ 40 billion in 2017 from $ 44 billion in the previous year, said UNCTAD’S World Investment Report 2018.

“FDI inflows to South Asia contracted by 4 per cent to $ 52 billion, owing to a drop in inflows to India” the report said today.As per the UNCTAD, the foreign inflows to India decreased from $ 44 billion in 2016 to $ 40 billion in 2017.

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Government puts protocol in place to speed up FDI

Source: The Economic Times, Jun 04, 2018

NEW DELHI: Having decided to turn down frivolous concerns raised by investigative agencies, the government has put in place a detailed protocol for clearing all foreign direct investment (FDI) proposals as part of an exercise to speed up approvals and bring about greater transparency.

Sources told TOI that a panel of secretaries has put in place norms for all allegations related to security, corruption, directors, tax cases, money laundering and round-tripping of funds, environment, and accidents. While specific inputs related to any of the issues will be probed, the protocol will detail how to deal with all other observations related to companies, their parents or subsidiaries as well as directors.

Although over 95% of FDI proposals are now on the automatic route, those related to sectors such as defence, aviation, telecom and I&B need clearance from the ministries concerned after the Centre decided to wind up the Foreign Investment Promotion Board (FIPB) last year.

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Govt considering 100 per cent FDI in insurance intermediaries

download (4).jpgSource: The Economic Times, May 10, 2018

The government is considering allowing 100 per cent foreign direct investment (FDI) in insurance intermediaries with a view to give a boost to the sector and attracting more funds, sources said. Intermediary services include insurance broking, third party administrators, surveyors and loss assessors.

The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector, which includes insurance intermediaries.

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Idea’s proposal seeking 100 pc FDI under consideration of DIPP

download (2).jpgSource: The Economic Times, Apr 22, 2018

NEW DELHI: Idea Cellular Ltd’s proposal to allow up to 100 per cent foreign direct investment in the company is under consideration of the Department of Industrial Policy and Promotion (DIPP), an official said.

The proposal assumes significance against the backdrop of pending merger of Idea Cellular Ltd and Vodafone India to form the country’s largest telecom operator.

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FDI threshold set at $20 million for merchant banking, asset management

Source: Business Standard, Apr 16, 2018

Foreign direct investors, keen on pumping money in merchant banking or asset management, have to bring in a minimum of $20 million.

The Centre has fixed a threshold of $20 million for foreign direct investments (FDIs) in unregistered fund-based activities such as merchant banking, underwriting, portfolio management services, stockbroking, and asset management.

The fund-based activities also include venture capital, custodian services, factoring, leasing and finance, housing finance, credit card business, micro credit, and rural credit. On the other hand, threshold for non-fund activities, such as investment advisory services, financial consultancy, forex broking, has been set at $2 million.

These activities also include money changing business and credit rating agencies. All these activities are unregulated by any financial sector regulator and FDI is allowed under the government route.