Corporate Professionals Blog

As per the provisions of Section 45I of the Reserve Bank of India Act, 1934 (“RBI Act”), a company registered under the Companies Act, 1956/ Companies Act, 2013 which is engaged in the business of acquisition of shares/bonds/debentures/securities or other marketable securities like leasing, hire-purchase, insurance business, chit business, loans and advances is considered as a Non-Banking Financial Company (“NBFC”). Similarly, a company engaged in the business of receiving deposits under a scheme or arrangement of lump sum or instalments (by way of contributions or any other manner) is also included under the ambit of the NBFC. All the NBFCs are required to obtain Certificate of Registration (“CoR”) under Section 45-IA of RBI Act. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com The reason behind such requirement of obtaining CoR is to keep the financial activities of NBFCs under a check through disclosure requirements. However, the requirement of obtaining...

NBFCs are the companies which are engaged in the business of providing finance through loans and/or investments in other companies. As per the provisions of Section 45I of the RBI Act, a company registered under the Companies Act, 1956 or any other corresponding legislation for the time being in force, which is engaged in the business of acquisition of Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com shares/ bonds/ debentures/ securities or other marketable securities like leasing, hire-purchase, insurance business, chit business, loans and advances is considered as an NBFC. Similarly, a company engaged in the business of receiving deposits under a scheme or arrangement of lump sum or instalments (by way of contributions or any other manner) is also included within the ambit of the NBFCs.

Press Note No. 8 (2014 Series) In terms of the FDI Policy, foreign investment is prohibited in railway transport, except Mass Rapid Transport System (“MRTS”). Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com The Government of India , vide notification S.O. 2113(E) dated August 22nd, 2014, has amended the list of industries reserved for public sector and has allowed domestic as well as foreign investment in rail infrastructure. Accordingly, DIPP vide Press Note no. 8 (2014 Series) dated August 27th, 2014, has amended Para 6.1 of the FDI Policy and permitted flow of foreign investment in the railway transport sector in construction, operation and maintenance of:

Press Note No. 7 (2014 Series) Government of India (GOI) has reviewed the policy on Foreign Direct Investment to liberalise the norms of FDI in Defence Sector. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com As per FDI Policy of 2014 (“FDI Policy”), issued on April 17th, 2014, by the Department of Industrial Policy and Promotion (“DIPP”), FDI in Defence sectors is permitted upto 26% under Government Route and any proposals for FDI beyond 26% can be made to Cabinet Committee on Security (CCS). The GOI has reviewed the FDI Policy vide Press Note No. 7 (2014 Series) and has amended Paras 4.1.3 (v) (d) and 6.2.6 of the FDI Policy to permit FDI upto 49% under Government Route. Proposals for FDI beyond 49% shall be considered by CCS on case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country.

Right investment is all about spotting the right opportunity. Locations where big infrastructure and industrial projects come up see rapid growth and ensure good returns. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com As a dream project of Prime Minister Narendra Modi, Gujarat International Financial Tec City (GIFT) is designed for Greenfield development as a hub for the global financial services sector. The GIFT master plan facilitates Multi Services Special economic Zone (SEZ) with International Financial Services Centre (IFSC) status, Domestic Finance Centre and associated Social infrastructure. GIFT SEZ Limited has been formed for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ. It is pertinent to note that the primary focus of the Multi Services SEZ will be on financial services.