Corporate Professionals Blog

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.

Nowadays balancing sustainable growth and a pool of talent at the same time in this dynamic business environment has become an era of wondering for the Corporate. Besides cash rewards, it is important for any organisation to make its employees believe that their personal growth is linked to the growth of the organisation. Employee Stock Option Plans /Equity Incentive Plans (commonly referred to as ESOPs) are one of the most important tools to attract, encourage and retain Employees Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com One of the basic fundamental for contemplating the idea to roll-out any incentive plan is to ensure the attractiveness of the Plan from the perspective of the Employees. Generally, the Companies opt for one or more modes with some permutation and combination to align it with the needs and objectives of its business with the sole intent to incentivise the valuable asset of their business i.e. Employees for their associa...

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.

We all are aware that in today’s era of globalization, Employee retention has become a buzzword and accordingly ‘ESOPs’ i.e, Employee Stock Option Plans has emerged as one of the most important tools to encourage, attract and retain employees. Earlier, when the Companies Act, 1956, was formulated, the concept of rewarding Employees through Stock Options Route was not recognized by the Indian market and was first introduced in early 90s when Indian IT Companies were facing the problem of poaching and brain drain. With the passage of time, ESOPs have gained importance not only in IT sector but in other sectors as well. Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com Considering the increased recognition and upward trend, lawmakers have also acknowledged the ESOPs and accordingly chalked down specific provisions for the same to ensure transparency in the process of rewarding employees.

The Hon’ble Finance Minister Shri. Arun Jaitley on 10.07.2014 presented the Union Budget 2014 and mentioned that slowdown in Indian economy has to be seen in the context of slowing global economic growth. He admitted there are green shoots of recovery seen in the global economy but mandate of “sab ka saath, sab ka vikaas” to be followed in order to leave no stone unturned in creating a vibrant India. Mr. Chander Sawhney Vice President +9810557353 chander@indiacp.com The central theme now is “minimum government, maximum governance” with emphasis on women, children, minorities, backward classes and disabled persons. Impetus has also been given to create opportunities for youth for skill development. Health, Education, Rural, Manufacturing, Infrastructure and affordable housing have been kept on the priority list. Capital Markets initiatives like liberalization of ADR, GDR regime, introduction of uniform KYC norms, one single operating DMAT account has also been touched upon....

This post discusses the concept of deposits as provided under Chapter V of the Companies Act, 2013 (hereinafter the Act of 2013) and the Companies (Acceptance of Deposits) Rules, 2014 (“Deposits Rules”), and how these may have an impact on the companies post the enactment. Mr. Abhishek Bansal Sr. Associate +919873191956 abhishek@indiacp.com Chapter V of the Act of 2013 (sections 73 to 76), except for section 75 and provisions relating to, or involving the National Company Law Tribunal, have been notified and came into effect from 1 April 2014. The Deposits Rules have been legislated thereunder to provide for the details relating to the acceptance and treatments of deposits under the Act of 2013.

SEBI at its Board Meeting, has approved the proposal to review the existing regulatory framework on Employee Stock Option Scheme (ESOS) and Employee Stock Purchase Scheme (ESPS) for listed entities and frame regulations for Employee Benefit Schemes involving shares of the company, replacing the existing SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 . Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com The proposed Regulations will, inter alia, cover all Employee Benefit Schemes which, directly or indirectly, deal in shares of the company. SEBI has intended to address the following issues through Regulations: 1. Composition of Trusts, 2. Secondary market acquisitions under Schemes and 3. Enhanced disclosures and better enforceability.