Corporate Professionals Blog

Vide Press Note 12 of 2015 series, issued on 24th November, 2015, DIPP allowed only those single brand retail trading entities to undertake retail trading through e-commerce, which operate through brick and mortar stores in India. The object of the press note was to bring more investments and also the high quality goods in India with the aim to growth and technological development of India. However the press note fails to define the target public for sale of the such goods through e-commerce and also defining region and coverage of the e-commerce sale considering the opening of the brick and mortar store, which leads to the interpretation of opening of one brick and mortar store in India and engaging into B2C e-commerce in the entire country thereby defeating the very purpose of the press note for brining in investments into India since the e-commerce model does not involve big investments. Thus as a result DIPP started receiving number of queries with respect to suc...

Infrastructure Sector companies and certain NBFCs allowed to raise ECB (External Commercial Borrowings) for shorter duration The Reserve Bank of India (RBI) with a view of development of Infrastructure of India has expanded the scope of funding through ECB, particularly for infrastructure sector, vide issuance of circular: A.P. (DIR Series) Circular No.56; dated 30th March, 2016. Now, infrastructure sector companies, non-banking finance companies (NBFCs), infrastructure finance companies (NBFC-IFCs), asset finance companies (NBFC-AFCs), holding companies and Core Investment Companies (CICs) will also be eligible to raise ECB under Track I of the ECB framework issued by the RBI in November, 2015. Earlier position: In the said ECB framework (released in November, 2015), RBI had detailed three tracks through which Indian companies could borrow from offshore market. Track-I allowed companies to borrow foreign currency loans with a minimum maturity of three-fiv...

DIPP issued Press Note 1 and 2 (2016 Series) - liberalizing FDI norms in insurance and pension sector On 23rd March, 2016, the Department of Industrial Policy and Promotion (DIPP), Government of India, issued Press Note 1 and 2 of 2016 Series, thereby liberalizing the extant FDI Policy on insurance and pension sector, respectively. The amendment in the said sectors is as following: Amendment in Insurance Sector Prior to the issuance of Press Note 1 (2016 Series), 26% FDI was permitted in the insurance sector under the automatic route and government approval was required for FDI beyond 26% and up to 49%. Now, up to 49% FDI is permitted under the automatic route, subject to prescribed conditions. In addition, it has now been prescribed that the investment under the automatic route up to 49% shall be subject to verification by the Insurance Regulatory and Development Authority of India. Amendment in Pension Sector Prior to issuance of Press Note...

The result of the long consultative process undertaken by the Company Law Committee constituted by the Ministry of Corporate Affairs in an attempt to revamp the Companies Act 2013 is out in form of the Companies (Amendment) Bill 2016 (‘Bill’). The Bill in the wake of facilitating ease of doing business aims to bring some radical changes in the Companies Act 2013. Further the Bill will certainly bring cheer among the corporates as it address some of their major concerns. - See more at: http://www.companiesact.in/Companies-Act-2013/News-Details/20712/Key%20Highlights%20of%20The%20Companies%20%28Amendment%29%20Bill,%202016