Corporate Professionals Blog

The Department of Industrial Policy and Promotion (“DIPP”), Government of India has unveiled the much awaited policy on Foreign Direct Investment on 17.04.2014 (“Consolidated FDI Policy”). This policy supersedes all earlierpolicies, circulars, press notes issued on FDI by DIPP and will remain in force until superseded. The Consolidate FDI policy is more of a compilation of circulars issued by Reserve Bank of India and press notes issued by DIPP during the last year. The key changes brought by new FDI policy are as follow:

Department of Industrial Policy and Promotion (DIPP) had on 13th February, 2009 issued two press notes i.e. Press Note 2 & 3 (2009) stating Guidelines for calculation of total foreign investment in Indian companies, transfer of ownership and control of Indian companies and downstream investment by Indian companies. The same has been incorporated in FEMA regulations for FDI vide Notification No.FEMA.278/2013-RB dated June 07, 2013. Now the Reserve Bank of India (RBI) has vide A.P. (DIR SERIES) CIRCULAR NO. 01 DATED JULY 04, 2013 provided for the one time reporting mechanism in respect of the calculation of the total foreign investment (Direct and Indirect) in respect of the press notes issued by DIPP and incorporated n the FDI Policy. The reporting with respect to the foreign investments made between 13th February,

INTRODUCTION The Indian Pharmaceutical industry currently tops the chart amongst India’s science based industries with wide ranging capabilities in the complex field of drug manufacture and technology. Amongst all the countries that fall under the category of developing countries, the Indian pharmaceutical industry is one of the biggest and the most advanced. It provides employment to a huge number of people and ensures that vital drugs are made available to the huge population of India at affordable rates. Mr. Manoj Kumar Vice President +919910688433 manoj@indiacp.com The drugs and pharmaceutical industry plays a pivotal role in the economic development of India. Being a very intense knowledge-based industry, it offers innumerable business opportunities for investors worldwide.Indian pharmaceutical exports accounts for export to more than 200 countries around the world. The annual turnover of pharmaceutical products contributes to about US$ 17 billion. In recent t...

In line with the announcement made in the Union Budget for the year 2012-13 to address the financial crunch faced by Indian aviation industry, RBI vide A. P. (DIR Series) Circular No. 113 dated 24th April, 2012 has allowed companies in civil aviation sector to avail ECBs on or before 23rd April 2013 for working capital/refinancing of outstanding working capital rupee loan(s) under approval route subject to following conditions: Airline Companies are registered under Companies Act, 1956 and has obtained license from DGCA for passenger transportation. ECB will be based on the cash flow, foreign exchange earnings and their capability to service the debt. Overall ceiling for the entire aviation sector would be USD One Billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 Million.