Rule on subsidiaries may limit operational flexibility of firms

Source:, Sept 25, 2017

New Delhi: The new limit on layers of subsidiaries that companies can have and the requirement to disclose all existing ones announced by the government last week is set to lift the corporate veil over ownership of assets held through a complex web of subsidiaries.

While the move will help the state in its fight against shell companies, it will cost businesses some operational flexibility that they want for strategic reasons, say experts.

The ministry of corporate affairs last Wednesday notified rules that restrict the layers of subsidiaries that companies can have to two, which will apply prospectively.Existing companies, however, have to disclose all details of their entire list of subsidiaries to the registrar of companies within 150 days.

Read the rest of this entry »


Making the most of the new industrial policy

Source:, Sept 25, 2017

The framing of the new industrial policy should be seen as an opportunity to chart a meaningful path for industry’s role in India’s development. The recently released discussion paper by the department of industrial policy and promotion mentions two points that need to be examined closely to grasp the headwinds industry will have to navigate: first, industry’s inadequate expenditure on research and development (R&D). And second, micro, the small and medium enterprises sector facing tough competition from cheap imports from China and other countries with which India has free trade agreements.

To put the first point into context, Huawei’s R&D expenditure (around $6.5 billion) is about the same or more than that of Indian industry, while Microsoft spends (around $12 billion) about the same as the Indian government. Regarding the second point, the consequence of the inflation-targeting framework and its impact on Indian industry via the exchange rate (resulting in cheaper imports from China) would need to be studied in greater detail.

Read the rest of this entry »

Government plans to make PAN the business Aadhaar for companies, NGOs

Source: The Economic Times, Sept 18, 2017

NEW DELHI: After debating for months, the government is moving to make Permanent Account Number (PAN) the Aadhaar for businesses as well as non-government organisations as it looks to close possible gaps for generation of black money.

Sources told TOI that the ministry of corporate affairs (MCA) has proposed amendments to the Income Tax Act as well as the Prevention of Money Laundering Act for the purpose and the government is looking at a mechanism under which any entity with cumulative transactions of over Rs 2 lakh annually will have to comply with the regulations.

Read the rest of this entry »

European retailers IKEA, H&M, Decathlon seek exemption from MRP norms in India

download (1)Source: The Economic Times, Sept 08, 2017

NEW DELHI: European retailers IKEA, Hennes & Mauritz AB and Decathlon want to be exempted from marking the maximum retail price (MRP) on their products because the practice is “burdensome and costly” and hinders their ease of doing business.

The companies have petitioned the government, saying the products they sell are sourced directly from suppliers around the world and there is no scope for price manipulation, which the requirement of MRP seeks to curb.

“We at IKEA own the products from production to selling them and there are no middlemen,” said Patrik Antoni, deputy country manager for IKEA in India.
Read the rest of this entry »

Hyderabad to get Rs 20,000 crore boost to become a global city

downloadSource:, Sept 07, 2017

Hyderabad: The Telangana government today said it is going to spend over Rs 20,000 crore on various development activities in the capital Hyderabad to make it a global city.

According to an official release, the government is in discussions with various financial institutions and banks to raise the required funds.A total of Rs 20,146 crore will be spent on various schemes related to water, drainage, roads and lighting to give a facelift to the city and make it a global city, it said.

Read the rest of this entry »

Mirae to enter India realty business with US$ 500 million investment

Source:, Sept 06, 2017

Mumbai: South Korea’s Mirae Asset Global Investments Co. Ltd plans to enter India’s real estate sector with a $500 million investment for buying commercial leased properties, a top company official said.

Mirae, which operates a mutual fund business—established in 2007—in India, has formed a real estate unit headed by Ashwini Kumar Mathur. Mathur, formerly assistant vice-president (capital markets) at property advisory firm Cushman and Wakefield, has worked with Tata Realty and Infrastructure Ltd and Ascendas Property Fund Trustee Pvt. Ltd.

Read the rest of this entry »

Branded apparel market in India may swell to Rs 250K crore by 2020

Source:, Aug 22, 2017

NEW DELHI: India’s lucrative fashion and lifestyle market that has attracted global bigwigs like Zara and H&M is now enticing top brands from Russia to Brazil to tap the growing market for western fashion products in India.

Turkey’s leading fashion brand Kigili has hired JLL India to scout for a local partner. “We have received a request to find suitable retail partners for this (Kigili) brand and are in the initial stages of the search,” said Pankaj Renjhen, managing director for retail at JLL India.

Read the rest of this entry »