In a reversal of its recommendations made in April 2008, the Telecom Regulatory Authority of India whittled the increase it had suggested then in the foreign direct investment cap for companies set up to uplink television news channels, as well as in FM radio.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
FDI inflows into the country have been declining over the past two years despite policy easing in about a dozen sectors.
The Centre on Thursday cleared 14 Foreign Direct Investment proposals worth Rs 1,257 crore, including those of Mauritius-based Essar Telecom Holdings Ltd and US-based Goldman Sachs Asset Management. The proposals include induction of foreign equity worth Rs 500 crore by Essar Telecom Holdings and Rs 200 crore from GSAM. The investment proposals were cleared by Finance Minister P Chidambaram on the recommendations of the Foreign Investment Promotion Board.
All foreign equity investments in stock exchanges prior to their listings will be treated as foreign direct investment, where 26 per cent is expected to be the cap.
On a five-day rolling basis, FPI selling is the highest in 24 years.
While raising the foreign direct investment limit to 100 per cent in the single-brand retail segment six months earlier, the government asked retail chains with over 51 per cent foreign investment to source at least 30 per cent of the value of products sold in the country from Indian small/village/cottage industries, artisans and craftsmen.
The government has imposed a service tax of 10.3 per cent on the gross value of tickets of all classes on the domestic flights and economy class on international routes.
The government on Friday hiked foreign investment ceiling in private banks from 49 to 74 per cent and allowed foreign banks to set up subsidiaries in the country.
Various corporate bodies from US and UK had cautioned that such tax proposals could dent India's image as an investment hotspot.
Finance Minister Pranab Mukherjee on Friday said the government is considering further liberalisation of the country's foreign direct investment policy for attracting investment in the infrastructure sector.
The government has last month significantly liberalised the FDI regime, putting most of the sectors on the automatic route
While the cumulative FDI inflows of $25.35 billion for April-February 2008-09 were higher than the $20.13 billion a year ago, the country has been witnessing a steep fall in foreign investments since October 2008, according to official figures. In February 2008, the foreign investment was $5.67 billion.
The government on Friday said it has started implementing liberal FDI rules under which proposals up to Rs 1,200 crore (Rs 12 billion) foreign equity would be cleared by the Finance Minister without seeking approval of the Cabinet Committee on Economic Affairs.
The stage is set for foreign investors to invest in India's commodity exchanges. The Manmohan Singh Cabinet will give formal approval this week on allowing foreign investment in commodity exchanges.
India received $2.21 billion in foreign direct investment in February, showing an annual growth of 74 per cent, taking cumulative inflows to $28.40 billion for the April-February period of the last fiscal.
With the government clearing the decks for direct listing at the Gujarat International Finance Tec-City (GIFT City) International Financial Services Centre (IFSC), issuers will wait for the ecosystem to develop further before firming up their listing plans. In the meantime, most companies may continue to prefer listing in the onshore market, even as the new avenue provides key benefits such as tax waivers and reduced foreign exchange risk. Sources said that a few key things need to be ironed out further.
Allaying investor fears over the levy of long-term capital gains tax on share transfer in unlisted companies, the government on Friday said the move is only to target 'khoka' companies, and 'genuine investments' in start-ups and through FDI will be exempt.
The Union ministry of consumer affairs has given the finishing touches to the policy framework to allow foreign direct investment and foreign institutional investment in India's national commodity exchanges.
China's FDI growth saw ups and downs in the first 11 months of 2015.
Bid to plug loopholes that surfaced in Hutch Essar case.
Ananjan Mitter, partner at ALMT Legal, a law firm, has represented Air Charter Service in the venture's application to the Foreign Investment Promotion Board, a key wing in the finance ministry that vets foreign direct investments proposals of companies.
After nearly five months wait, the government on Friday cleared UK's BP Plc buying 30 per cent stake in most of Reliance Industries' oil and gas blocks, including the showpiece KG-D6 gas fields, for $7.2 billion.
The new foreign direct investment guidelines may be revised with respect to the banking sector to avoid an adverse fallout for Indian banks with majority foreign equity.
There is a high possibility that one or two Indian airlines might not survive the rough weather.
In July 2011, the country had received foreign investment worth $1.10 billion.
The flow of foreign direct investment into China, dubbed as the world's factory, continued its slight decline in the first eight months this year.
Civil Aviation Minister Ajit Singh has said that India is a land of emerging opportunities and the aviation scenario in the country is fast changing and poised for breaking boundaries and scaling new heights.
Goyal also said that current account deficit is likely to be 2.5 per cent of GDP this year.
The Union Cabinet on Thursday approved a proposal to allow 100 per cent foreign direct investment (FDI) in public sector refiners, expanding the scope for FDI in the privatisation of Bharat Petroleum Corporation Ltd (BPCL). The approval by the Cabinet will enable the sale of the government's 52.98 per cent stake in BPCL to a foreign buyer, and, at the same time, will open the door for FDI in other public sector companies in the oil sector put up for privatisation.
Amid intense scrutiny from short-sellers and regulators, Adani group stocks have seen a significant shift in their shareholder base: Relatively opaque foreign portfolio investors (FPIs) have given way to more recognisable investors and broad-based funds. The list of large public shareholders - those directly holding at least 1 per cent - is now dominated by entities, such as the state-owned Life Insurance Corporation (LIC), US-based GQG Partners, Abu Dhabi-based International Holding Company, and Qatar Investment Authority's INQ Holding.
The Bharatiya Janata Party on Tuesday said it is against rushing through the Foreign Direct Investment-related Foreign Exchange Management Act notification in Parliament along with the main debate on the issue.
It's pointless and stupid to allow foreign direct investment in retail and investment, says Jayati Ghosh.
These companies struck joint ventures with foreign partners before the government relaxed FDI sectoral limits by issuing Press Notes 2 and 4 in February this year, and had approached FIPB for approvals later. FIPB sent a note to this effect to the RBI a month ago, advising the central bank to deal with such cases.
Power Minister Jyotiraditya Scindia on Monday made a high pitch for American investments in India's power sector.
"You can't please all people. And the finance minister has done as good a job as was possible," said Prime Minister Manmohan Singh in an interview with T N Ninan, editorial director and chairman of Business Standard Ltd, on Monday after Finance Minister Pranab Mukherjee announced the Budget proposals in Parliament.
"You can't please all people. And the finance minister has done as good a job as was possible," said Prime Minister Manmohan Singh in an interview with T N Ninan, editorial director and chairman of Business Standard Ltd, on Monday after Finance Minister Pranab Mukherjee announced the Budget proposals in Parliament.
The relaxation will apply to those sectors that have composite caps (foreign direct investment or FDI plus FII). "The move will not impact sectors like banking and insurance which are governed by Acts of Parliament. However, sectors with composite caps which see administrative control like telecommunication services, broadcast services like direct-to-home and FM radio will benefit," a Delhi based FDI policy expert told Business Standard.
India's economy is capable of absorbing $50 billion in foreign direct investment per year, feels FM.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances