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New FDI rules prompt Yahoo News to exit India

New FDI rules prompt Yahoo News to exit India

Yahoo brought down the shutters on its news websites on 26 August as a result of recently updated foreign direct investment rules that limit foreign ownership of digital media. “The decision did not come lightly”...
A corridor to new Singapore economic partnerships, Vivaik Sharma and Apeksha Sonawale, Cyril Amarchand Mangaldas

A corridor to new Singapore economic partnerships

By Vivaik Sharma and Apeksha Sonawale, Cyril Amarchand Mangaldas
Singapore’s strategic maritime location, well-respected diplomatic links and excellent treaty network make it the gateway to Asian markets. With 29% of foreign direct investment (FDI), it heads the list of investors in India. The...
Downstream investments by NRIs are not foreign investments, Shinoj Koshy and Purvi Khanna, L&L Partners

Downstream investments by NRIs are not foreign investments

By Shinoj Koshy and Purvi Khanna, L&L Partners
Investments by non-resident Indians (NRI) in Indian entities, that is companies or LLPs, on a non-repatriation basis are deemed to be domestic investments and treated equally with investments by residents. However, the Foreign Direct...
Trust structures from an FDI perspective, Harish Kumar and Itee Singhal, L&L Partners

Trust structures from an FDI perspective

By Harish Kumar and Itee Singhal, L&L Partners
Trust structures are increasingly gaining popularity for wealth and succession planning in India where most businesses are family driven. Increased global business opportunities have led business families, particularly the younger generations, to migrate and...
FDI policy oversees trading on technology platforms, Asim Abbas and Ananya Mishra, L&L Partners

FDI policy oversees trading on technology platforms

By Asim Abbas and Ananya Mishra, L&L Partners
The buying and selling of goods and services on technology platforms has grown exponentially during covid-19. A technology platform connects buyers and sellers and facilitates commercial transactions between them. E-commerce platforms, under the FDI...
Increased liabilities for AIF committee members

Increased liabilities for AIF committee members

The Securities and Exchange Board of India (SEBI) recently amended the SEBI (AIF) Regulations, 2012. The amendment introduces several regulatory changes to the framework for governance of alternative investment funds (AIFs) in India. One...
What the 2021 budget holds for business, Manoj Kumar, Hammurabi & Solomon

What the 2021 budget holds for business

By Manoj Kumar, Hammurabi & Solomon
The budget for 2021-22, which was unveiled on 1 February 2021, impacts a number of commercial sectors. In the corporate field, small companies are now defined as companies with paid up capital of ₹20 million...
States can grow through nurturing neo agriculture, Shantanu Jindel and Vidur Prabhakar, J Sagar Associates

States can grow through nurturing neo agriculture

By Shantanu Jindel and Vidur Prabhakar, J Sagar Associates
Setting up a company depends on how business people view circumstances. Factors such as infrastructure, stamp duty laws, domestic and international connectivity, the policies of state governments, the availability of labour and talent, and...
Policy tweak

Policy tweak

The Draft Data Centre Policy 2020 is much needed for the digital economy, but could benefit from single window clearance, economic incentives and protections against misuse of data, writes PM Devaiah   The Draft Data...
Reach for the sky

Reach for the sky

The aviation industry is poised for soaring growth after flying through the current turbulence, writes Boeing counsel Akhil Prasad The aviation industry has come a long way since the first commercial flight in India on...
Pulling the plug

Pulling the plug

The government's plan to cap foreign investment in digital media aims to control the influence of online news, and curb fake news, but the legislation leaves a lot of questions unanswered despite a clarification...
news mosaic media

Alpha Partners, SAM assist on Mosaic Media deal

Alpha Partners advised HT Media when it acquired Mosaic Media Ventures, a subsidiary of News Corporation, for an undisclosed amount. Shardul Amarchand Mangaldas & Co (SAM) advised News Corporation and its Singapore-based subsidiary, NWS...
digital news

New foreign investment limits for digital news media

By Shinoj Koshy and Purvi Khanna, L&L Partners
In August 2019, the government announced reforms to the foreign direct investment (FDI) policy to permit 26% FDI under the government route in the uploading and streaming of news and current affairs through digital...

Commerce ministry consolidates FDI policy changes

The Ministry of Commerce released the 2020 edition of the consolidated foreign direct investment (FDI) policy on 28 October, incorporating all the changes adopted in foreign investment in the past year. The 111-page document tries...
Freny Patel reports, Vodafone,Indian government

Billions on the line

Vodafone may have won the day after a favourable arbitration result cut off India's claim to massive back taxes, but will this crucial award remain unchallenged when so much more is at stake? Freny...
FDI Foreign direct investment defence sector

FDI limits in defence sector further liberalized

The government on 18 September issued Press Note 4 of 2020 to increase the foreign direct investment (FDI) limit in India’s defence sector to 74% from 49% under the automatic route. The liberalized FDI...
Ashwini-Vittalachar,-MV-Abhinaya,-Samvad-Partners investment

Press note 3: Restriction on investment from China

By Ashwini Vittalachar and MV Abhinaya, Samvad Partners
With the spread of the global pandemic coupled with an economic downturn, the government appears to have become concerned at foreign footprints in Indian industries. The growing global antagonism against China heightened concerns over...
Vivek Pareek,Maathangi Hariharan,L&L Partners, FDI

FDI relaxations in insurance may not get desired response

By Vivek Pareek and Maathangi Hariharan, L&L Partners
In a timely move intended to attract foreign direct investment (FDI), the government has allowed 100% FDI under the automatic route in insurance intermediaries. Industry stakeholders had long requested a relaxation in investment caps...
FDI restrictions Ayushi Mishra,Shardul Amarchand Mangaldas & Co,Inbox,FDI

Defining ‘beneficial owner’ and FDI restrictions

To restrict opportunistic takeovers/acquisitions of Indian companies due to low valuations in light of covid-19, the Department for Promotion of Industry and Internal Trade (DPIIT) via Press Note 3 of 2020 (PN3) revised the...
Ekta Bahl,Sanjana Shrivastava, Samvad Partners, Investors

Covid-19 impacts exit of PE and VC investors

By Ekta Bahl and Sanjana Shrivastava, Samvad Partners
In the wake of the covid-19 pandemic and its economic consequences, the private equity and venture capital industry has seen a major downturn. The pandemic has also increased the focus on exit options available...
Nisha Mallik and Niranjana Menon, Samvad Partners FDI Japan foreign direct investment

Japan’s rising interest in the Indian startup scene

By Nisha Mallik and Niranjana Menon, Samvad Partners
A look at investment trends over the past few years clearly shows that Japanese investors have made huge inroads into Indian private equity and venture capital markets. They are currently some of the biggest...
indian manufacturing lawyer

Expanding Indian manufacturing in EU, US

By Gautam Khurana, India Law Offices
Exponential growth in the manufacturing sector that had been promised for more than a decade may soon be achieved. Post-1991 reforms that liberalized the economy led to substantial but gradual growth. The current government...
Post covid-19

Facilitating exits in a post-covid-19 world

By Nivedita Tiwari and Nandini Seth, Shardul Amarchand Mangaldas & Co
The economic reforms of 1991 gave India a high growth trajectory making it the fifth largest economy in the world. While complete capital account convertibility is still not permitted, significant steps have been taken...
FDI

Standing down the guard and increasing FDI in defence

By Damini Bhalla and Akshay Jain, L&L Partners
In one of most significant moves in modern times concerning the defence sector, the finance minister recently announced that the foreign direct investment (FDI) limit in the defence sector under the automatic route would...
protection

Protection of founder interests in VC transactions

By Nisha Mallik and Neha Mirajgaoker, Samvad Partners
Before the outbreak of COVID-19 pandemic, startups and the founders had a healthy infusion of funds, with multiple investors ready to assist them to achieve their revenue and customer acquisition targets. The chain from...
real estate

Foreign entities acquiring real estate in India

By Alok Tewari and Simrat Grover, Kochhar & Co
Every non-Indian entity (foreign entity) setting up operations inevitably becomes involved in the acquisition of real estate whether by lease, licence or sale. While Japanese entrepreneurs have long been doing business in India, their...
investors

New rules to socially distance non-resident investors

By Snigdhaneel Satpathy and Sanchita Kumari, L&L Partners
“The times they are a-changin”, Bob Dylan sang in his famous song, which seems as apt for the current regulatory regime of foreign exchange laws as it did for the turbulent times in which...

Moving past the pandemic

The pandemic has thrown up challenges for maintaining productivity, honouring contracts and keeping workers employed. Mansha Shukla writes about the key considerations for in-house counsel COVID-19 is preying on thousands of lives and has battered...
SEBI unveils amendments for investment in debt

Jio-Facebook deal: Competition in jeopardy?

On 23 April, the Indian market saw one of its biggest deals go off. Facebook bought a 9.9% stake in Jio Platforms for a whopping US$5.7 billion. With Jio attracting the largest FDI deal...
relief

Slowing the free fall

Taking stock of the relief measures deployed by regulators to soften the impact of the lockdown. Gautam Kagalwala reports With the COVID-19 outbreak, the government has been fighting on two fronts. It has introduced a...
payment

Online payment players are now under the RBI

By Juhi Mehta and Manali Kakatkar, Samvad Partners
After first raising its intention to bring payment aggregators (PA) and payment gateways (PG) under its regulatory purview in its discussion paper of September 2019, the Reserve Bank of India (RBI) on 17 March...
VC

Virtual currency trade sees challenges with FDI

By Arjun Rajgopal and Akshaya Iyer, L&L Partners
On 4 March 2020, the Supreme Court (court) quashed the Reserve Bank of India’s (RBI) circular of 6 April 2018 prohibiting entities regulated by the RBI from dealing in virtual currencies (VC) or providing...
M&A

What’s in store for M&As in a post COVID-19 economy

By Raghubir Menon and Aditya Parolia, Shardul Amarchand Mangaldas & Co
The economy has come to a halt in the current unprecedented situation. Apart from medical and essential service providers, labour and capital have been idle during the coronavirus-induced lockdown, and the world economy seems...
demergers

A chaotic situation in cross-border demergers

By Nisha Mallik and Roshni Menon, Samvad Partners
In December 2019, the National Company Law Tribunal (NCLT) in the matter of Sun Pharmaceutical Industries held that the Companies Act, 2013 (act), read with the Foreign Exchange Management (Cross Border Merger) Regulations, 2018...
foreign direct investment

Budget gives foreign direct investment its rightful place

By Navin Syiem and Nitin Gera, L&L Partners
Despite weak macroeconomic trends due to various internal and external factors, India witnessed a sharp increase of 16% in foreign direct investment (FDI) in 2019. Structural reforms undertaken by the government, including a reduction...
Legal and financial plans

Legal and financial plans beyond COVID-19

By Gautam Khurana, India Law Offices
COVID-19 has presented challenges that nobody could have envisaged three months ago. Each day existing as well as future challenges become larger. We need to fight the current difficulties and keep ourselves safe from...
digital media

FDI in digital media – easing of norms or restriction?

By Vivek Pareek and Shreshth Bhartia, L&L Partners
Last year the government, in order to boost the flagging economy, announced policy changes to foreign direct investment (FDI) under which investment norms were relaxed in certain sectors. The announcement was followed up by...
company

The risk-reward conundrum

A GC’s ability to play a lawyer-guardian type role in a company is critical, writes Neeta Sanghavi The purpose of corporate governance is to facilitate effective entrepreneurial and prudent management that can deliver the long-term...
Korean

Perspectives on Korean investment in India

By Rajat Prakash and Siddharth Mahajan, Athena Legal
India has gradually liberalized its norms for attracting foreign direct investment (FDI). South Korea has emerged as one of the largest contributors to FDI. More than 500 South Korean companies, including Samsung, LG, Hyundai,...
FDI

India in 2020: Easing restrictions on foreign investment

This article is one of four in an annual Vantage Point series where in-house counsel identify key risks and opportunities in the year ahead Foreign direct investment (FDI) is a major monetary source for India’s economic...
insolvency

NBFCs brought under purview of insolvency code

By Anisha Shroff and Sharanya Kundu, Samvad Partners
With the introduction of a codified law on insolvency and bankruptcy processes, restructuring jurisprudence entered a new era. While the new law focused on rehabilitating and restructuring stressed companies, restructuring processes involving financial service...
foreign

Amendments bring clarity for foreign-owned retailers

By Anshuman Mozumdar and Anirudh Gotety, L&L Partners
The Department for Promotion of Industry and Internal Trade (DPIIT) released Press Note 4 of 2019 on 18 September 2019 introducing, among other matters, changes to the policy for foreign direct investment (FDI) in...
company

Perils of company buyback in venture capital financing

By Siddharth Seshan and Tushar Gogoi, Samvad Partners
You just have raised a new round of financing for your company at a rich valuation. It has been a particularly hard and well-fought negotiation with your investors. Before the celebrations can begin, however,...
Investment

Open for business

The government recent relaxed foreign investment requirements in areas such as single brand retail and contract manufacturing to outside players. Dipti Lavya Swain assesses the move The Indian government recently announced several measures intended to...
FDI

FDI reforms give embattled economy a shot in the arm

By Vaibhav Kakkar and Sahil Arora, L&L Partners
Government data show that economic growth has slipped to 5% for the April-June 2019 quarter, a six-year low. With stock markets tumbling and automobile manufacturers grumbling, the government has gone on a reform spree....
exchange

Foreign exchange management rules notified

The Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDI rules), notified by the central government on 17 October 2019, along with the Reserve Bank of India’s (RBI) Foreign Exchange Management (Debt Instrument) Regulations, 2019,...

Acquisition of companies through share swaps

By Jay Gandhi and Abhishek Parekh, Shardul Amarchand Mangaldas & Co
Analysis of global trends shows that share swap structures have become integral elements in most M&A transactions. The acceptance of stocks as currency for such acquisitions is well established, as Disney’s US$71 billion acquisition...
Korean

MSME policy and Korean investment in India

By Rajat Prakash and Siddharth Mahajan, Athena Legal
The micro, small and medium enterprise (MSME) sector is the second-largest employer in India, coming in just behind the agrarian sector. The MSME sector plays a critical role in the Indian economy. The central...
FDI

Searching for answers in new FDI proposal

By Vineetha MG and Srabonee Roy, Samvad Partners
On 28 August 2019 the government announced its new proposal on Foreign Direct Investment (FDI). While the announcement has been made, the fine print of the proposed changes to the existing FDI policy has...
PPA

Enforcing PPA: Guarding against unilateral change

By Abhishek Tripathi and Anura Gupta, Sarthak Advocates & Solicitors
Private sector participation in power generation has been at the core of power security in the last two decades, with independent power producers (IPP) currently owning 46% of the total installed generation capacity in...

Understanding changing e-commerce landscape

By Gautam Khurana, India Law Offices
Indian government’s decision to allow 100% FDI in e-commerce through the automated route in 2016 was a breath of fresh air for a large number of startups in India. It was a welcome move...
Kanchan Sinha and Sanya Parma, L&L Partners

Long and short of e-commerce foreign investment rules

By Kanchan Sinha and Sanya Parmar, L&L Partners
E-commerce in India has grown at a phenomenal pace, successfully changing the way people transact. The Digital India initiative by the government has helped expand the e-commerce sector in India across services ranging from...
Infrastructure

Infrastructure investments to boost economic growth

By Upendra Nath Sharma and Pooja Thomas, J. Sagar Associates
Infrastructure is the backbone of any nation’s development and, therefore, the sector enjoys the government’s attention. In the interim budget for 2019-2020, around ₹4.56 trillion (US$63.20 billion) was allocated to the infrastructure sector, which comprises...
investors

Bitter pill to swallow for foreign investors in pharma

By Vikrant Kumar and Anina D’Cunha, L&L Partners
Partially in response to a number of high-visibility inbound acquisitions in the Indian pharmaceutical sector, the government of India decided to bring brownfield acquisitions completely under the government approval route in November 2011. Greenfield...
foreign direct investment

Policy prescriptions to ignite FDI in defence production

By Alina Arora and Apurva Zutshi, L&L Partners
The foreign direct investment (FDI) policy allows foreign original equipment manufacturers (FOEM) in the defence sector to acquire up to a 49% stake in Indian joint ventures (JV) under the automatic route and up...

Online aggregators need legal, regulatory clarity

By Vishruta Kaul and Amit Khansaheb, Shardul Amarchand Mangaldas & Co
Regulation of e-commerce in India, specifically the permissibility of foreign investment in the sector has been dominated by, and has evolved into, a discussion on what constitutes a marketplace. While the foreign direct investment...
Kanishk Divpriya Chawla Shardul Amarchand Mangaldas & Co business law

DPIIT provides clarity on defence manufacturing

By Kanishk and Divpriya Chawla, Shardul Amarchand Mangaldas & Co
India’s foreign direct investment (FDI) policy sets out the restrictions applicable to investments in the defence sector and makes it applicable to the defence industry subject to industrial license under the Industries (Development &...
Ankit-Khushu-Kachwaha-&-Partners-law-business

Kachwaha grows its partnership

Ankit Khushu, a senior associate at Kachwaha & Partners, has been elevated to the firm’s partnership with effect from 1 April. With Khushu’s promotion the firm now has four partners. “Our firm believes in organic...
Vishwanath Pratap Singh and Srabanee Ghosh, L&L Partners

Single brand retail: Poised for gains or lost in ambiguity?

By Vishwanath Pratap Singh and Srabanee Ghosh, L&L Partners
Foreign direct investment (FDI) in the single brand retail trading (SBRT) sector was expected to gain traction owing to a comparatively relaxed framework introduced last year. The revised regime permitted 100% FDI under the...
Alternative Investment Funds follow guidelines by SEBI

SEBI issues circular for alternative investment funds

The Securities and Exchange Board of India (SEBI) on 26 November 2018 issued a circular outlining the operating guidelines for alternative investment funds (AIFs) in the international financial services centre (IFSC). SEBI had issued...
Deals of the year 2018 | India Business Law Journal

Deals of the Year 2018

India Business Law Journal reveals the most important deals and disputes of 2018 and the law firms behind them. Gautam Kagalwala reports Last year mingled pleasure with pain for debt-strapped India, and many of the...
India-data-privacy-e-commerce-pharma-in-house-lawyers-2

India in 2019

Three prominent in-house counsel foretell the risks and opportunities in the pharma, data privacy and e-commerce sectors Pharma: evolving priorities The year ahead will see pharma companies and their general counsel (GC) continue to grapple with...
Bhumika-Batra-and-Sachita-Shetty-Crawford-Bayley-&-Co

Current regulatory trends bode well for joint ventures

By Bhumika Batra and Sachita Shetty, Crawford Bayley & Co
The “Make in India” initiative launched by Prime Minister Modi on 25 September 2014 offered several incentives, enabling foreign businesses in various sectors to collaborate with domestic players. It provided an impetus to the...
Vaibhav-Kakkar-and-Keshav-Pareek-L&L-Partners

The grinch that stole Christmas for e-tailers

By Vaibhav Kakkar and Keshav Pareek, L&L Partners
The day after Christmas, the government issued a press note clarifying its stance on foreign direct investment (FDI) norms for e-commerce marketplaces, in a bid to mollify trade associations that were protesting against the...

DailyNinja scores new round of funding

DailyNinja Delivery Services’ new round of funding involved drafting of a deed of adherence (DOA) to help the company, which has many angel investors, raise capital faster in the future, said a lawyer involved...

Forex rules hinder foreign participation in debt unwind

By Apurva Jayant and Amritha Kumar, L&L Partners
“It is said that the world is in a state of bankruptcy, that the world owes the world more than the world can pay.” (Ralph Waldo Emerson.) Whether or not universally true, this quotation...

Media ownership rules in the age of internet

By Bharat Vasani, Cyril Amarchand Mangaldas
The rapid consolidation in the Indian media industry has again caused a debate on the regulation of cross-media ownership. While the number of channels for entertainment and information have increased, control of these channels...

Financial services firms hit by minimum capitalization

By Shinoj Koshy, L&L Partners
A press release from the Ministry of Finance dated 16 April has modified the 2017 foreign direct investment (FDI) policy by reintroducing the concept of minimum capitalization norms for the financial services sector. The...
Legal news in brief

News in brief

PROMOTIONS AT F&M, KOLKATA Fox & Mandal, Kolkata (F&M) promoted seven of its principal associates to partner on 29 August. The promotions bring the total number of partners to 12 across the firm’s four offices. The new...

Bahrain bank funds Navi Mumbai township project

Solomon & Co, which advised Khaleeji Commercial Bank in its funding of a ₹500 billion (US$7 billion) township project, had to work within the Shariah law framework to meet the bank’s requirements. The Bahraini bank...

Ease of doing business: Uneasy reporting of FDI

By Vaibhav Kakkar and Snigdhaneel Satpathy, L&L Partners
The past couple of years have seen substantial reforms to further liberalize foreign direct investment (FDI) rules in India, in a bid to attract more foreign investment. While some sectors continue to have restrictions...

Convertible notes: A viable option for Indian startups?

By Aparna Ravi, Samvad Partners
Overseas investors looking to invest in Indian companies through the foreign direct investment (FDI) regime have traditionally had to do so either through equity shares or through instruments that are compulsorily convertible into equity...

Clarity needed on contract or job worker manufacturing

By Sourav Kanti De Biswas, Shardul Amarchand Mangaldas & Co
Manufacturers in India are permitted to sell their products through wholesale and/or retail (including through e-commerce) without seeking prior approval of the government. A long-time provision in the foreign direct investment (FDI) policy permits...

Upswing in M&A activity expected to gather steam

By Rupinder Malik and Revathy Muralidharan, J. Sagar Associates
The infrastructure sector – largely comprising power, roads and highways, urban built-up infrastructure, townships and construction development activities – is an integral factor in the rapid growth of India’s economy. The country has witnessed...

Foreign funds pouring into affordable housing projects

By Vishwanath Pratap Singh and Srabanee Ghosh, Luthra & Luthra Law Offices
The launch of Pradhan Mantri Awas Yojana – a government scheme targeting housing for all by 2022 – has led to a shift of focus from the luxury segment to affordable housing. Other factors...

Ministry’s move mystifies financial services sector

By Devyani Dhawan and Mohit Yadav, SNG & Partners
India’s financial services sector has attracted significant interest, both from lawmakers and foreign investors. Liberalization of the sector can be traced back to the early 1990s. Before October 2016, foreign direct investment (FDI) in the...
MINIMUM-CAPITAL-NORMS-INTRODUCED-FOR-FDI-ENTITIES

Minimum capital norms introduced for FDI entities

The Ministry of Finance in a press release dated 16 April introduced minimum capital norms for foreign investment in entities (unregistered or exempted) involved in other financial services, which are unregulated by financial sector...

Steps in press note enhance India’s allure for investors

By Vaibhav Kakkar and Debarpan Ghosh, Luthra & Luthra Law Offices
In the past, regulatory stagnancy and resistance to change, coupled with regulatory uncertainty, interpretational ambiguity, and a protectionist attitude, have hamstrung India’s efforts to project itself as a destination for foreign direct investment (FDI)....

Instruments and options available under FDI route

By Apurva Jayant and Vishakha Panchangam, Luthra & Luthra Law Offices
The past two to three years have been an exciting time to practise private equity law in India with the government heightening its focus on creating a more navigable terrain for foreign investors. Various...
A photo of Vikrant Kumar and Naren BS from Luthra and Luthra Partners on an article about share swaps

Clearer policy needed on cross-border share swaps

By Vikrant Kumar and Naren BS, Luthra & Luthra Law Offices
One of the less discussed aspects of liberalization under the foreign direct investment (FDI) policy is in relation to share swaps. Apart from traditional means of cash payment for acquiring capital instruments, the extant...

NLS Bengaluru bags first prize at Boston moot finals

A team from the National Law School of India University (NLSIU) Bengaluru, emerged as the global winner of the Skadden Arps Foreign Direct Investment International Arbitration moot, which took place at Suffolk University Law School...

FDI policy: What is needed to draw more investment?

By Deepak THM and Vivek Pareek, Luthra & Luthra Law Offices
Start-up India, Make in India and other ambitious government initiatives, coupled with a liberalized policy and legislative improvements in areas such as insolvency and taxation, have resulted in India rising to 100th on the...

Business perspectives of mines and minerals regime

By Manoj Kumar, Hammurabi & Solomon
India is rich in natural resources, with a geological makeup that is similar in many ways to that of countries such as Canada, Australia, Brazil, South Africa, Chile and Mexico. With the world’s third-largest...
Feature Image of an article about TISPRO regulations and Foreign Exchange Management by RBI

RBI implements new foreign exchange regulations

The Reserve Bank of India (RBI) on 7 November issued the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 (TISPRO Regulations). The new TISPRO regulations supersede...

FDI Policy, 2017: Decoding ambiguities

By Dipti Lavya Swain and Srabanee Ghosh, Luthra & Luthra Law Offices
One of the prime targets in policy making has always been attracting greater foreign investment into India. Accordingly, the country’s foreign direct investment (FDI) policy has been frequently amended, as and when required. On...

Processing of FDI proposals: What will the new era hold?

By Kanchan Sinha and Sanya Parmar, Luthra & Luthra Law Offices
The government of India, through a notification dated 5 June, approved the proposal for phasing out of the Foreign Investment Promotion Board (FIPB). Pursuant to the proposal, the task of granting approval for foreign...

DIPP issues consolidated FDI policy

The Department of Industrial Policy and Promotion (DIPP) issued the Consolidated Foreign Direct Investment Policy Circular of 2017, effective from 28 August. The consolidated foreign direct investment (FDI) policy has made certain general changes...
Processing of FDI proposals standardized

Processing of FDI proposals standardized

The Department of Industrial Policy and Promotion (DIPP) of the Ministry of Commerce and Industry on 29 June issued a standard operating procedure (SOP) for processing foreign direct investment (FDI) proposals. The SOP sets...
Liberalization and reforms fuel record-breaking M&A activity

Bustling market

Liberalization and reforms fuel record-breaking M&A activity, writes Nandini Lakshman The year 2016 saw a swell in the number of India-related mergers and acquisitions thanks to a series of changes. A more liberalized foreign direct...
Damini Bhalla, Gargi Bohra, Luthra & Luthra Offices, on Cruz City ruling

Cruz City ruling: ‘Option’ for downside protection

By Damini Bhalla and Gargi Bohra, Luthra & Luthra Law Offices
Delhi High Court in its recent decision in Cruz City v Unitech rejected Unitech’s objections to enforcement of an arbitral award. The dispute related to the put option exercised by Cruz City obligating Unitech...
India heads say they have not waivered in their commitment to India

Still stalking?

India heads at international law firms say they have not wavered in their commitment to India When the first issue of India Business Law Journal rolled off the printing press in June 2007, many observers...
Alina Arora and Parth Singh, Luthra & Luthra Law Offices

Changes needed to attract defence sector investment

By Alina Arora and Parth Singh, Luthra & Luthra Law Offices
The current consolidated foreign direct investment (FDI) policy, as amended by the Department of Industrial Policy and Promotion via Press Note 5 of 24 June 2016, allows for FDI in the defence sector up...
Durgesh Singh and Abhishek Sarkar, Link Legal India Law Services

Investing in roads: Issues, mitigation and incentives

By Durgesh Singh and Abhishek Sarkar, Link Legal India Law Services
India’s 4.87-million-kilometre road network is the world’s second largest and accounts for almost 80% of the country’s passenger traffic and 60% of its freight traffic. To develop the roads sector, the government has allocated...
Private equity investors get hungry for control

Big, bold and bullish

The desire for control, the struggle for funding, a changing tax regime and increased liability are some of the key themes dominating India’s private equity landscape. Vandana Chatlani reports Last year was a year of big and...
Rules for FDI in limited liability partnerships clarified

Rules for FDI in limited liability partnerships clarified

The Reserve Bank of India has notified a scheme for foreign direct investment (FDI) in limited liability partnerships (LLPs) through an amendment to the Foreign Exchange Management (Transfer or Issue of Security by a...
Iqbal Khan, Natashaa Shroff, Shardul Amarchand Mangaldas

Dynamism endures

By Iqbal Khan and Natasha Shroff, Shardul Amarchand Mangaldas
Iqbal Khan and Natashaa Shroff at Shardul Amarchand Mangaldas analyse India’s PE landscape in 2017 In a global investment environment characterized by increasing policy uncertainty, the India investment story is a rare example of a...
Sawant Singh and Aditya Bhargava at Mumbai office of Phoenix Legal

Is the budget a bellwether or a Cassandra for reforms?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
With the last throes of the demonetization saga closely nipping at the government’s heels, much theatre and fanfare accompanied the introduction of its 2017-18 budget. Tension was heightened as the union budget was merged...
Damini Bhalla and Samir Dudhoria, Luthra & Luthra Law Offices

FIPB phase-out: A bold and welcome move – or is it?

By Damini Bhalla and Samir Dudhoria, Luthra & Luthra Law Offices
In his 2017-18 budget speech, Finance Minister Arun Jaitley announced the decision to phase out the Foreign Investment Promotion Board (FIPB) by 2018. He stated that after the government’s substantial reforms to the foreign...
William Vivian John and Tanaya Sanyal Decoding the FDI policy liberalization in food retail

Decoding the FDI policy liberalization in food retail

By William Vivian John and Tanaya Sanyal, Luthra & Luthra Law Offices
While agriculture employs almost half of India’s population, it contributes only about 14% to the nation’s GDP, resulting in low per capita income of the workforce engaged in the sector. And, while India produces...

Money matters

L Badri Narayanan and Amar Gahlot analyse what the budget means for business. The government has been fairly active over the past year liberalizing certain sectors and implementing other business-friendly schemes. Its drastic demonetization move dominated headlines as efforts...
A push for procedural certainty

A push for procedural certainty

Gowree Gokhale and Jaideep Reddy analyse the problems of delegated legislation and suggest ways to resolve them. While the constitution and central and state statutes are the basis of India’s legal regime, delegated (or subordinate)...
deals of the year 2016 India business law journal

Deals of the year 2016

India Business Law Journal showcases the most significant deals and disputes of 2016 and reveals the legal advisers who guided them. By Nandini Lakshman With the Bombay Stock Exchange’s benchmark Sensex dipping by over 9% in the 2015-16 fiscal...

Policy easing: A cracking start needs a strong finish

By Vaibhav Kakkar and D Preethika, Luthra & Luthra
India’s inflow of foreign direct investment (FDI) rose to US$55.46 billion in 2015-16 from US$36.04 billion in 2013-14 due to radical liberalization by the current government. Efficient and swift decision making has replaced policy paralysis,...
RUDRA KUMAR PANDEY and BANI BRAR, Shardul Amarchand Mangaldas & Co.

On the cards

Rudra Kumar Pandey and Bani Brar forecast emerging regulatory trends and opportunities for in-house counsel to be business leaders. The International Monetary Fund in its recent report (October 2016) forecasted that India would continue to...
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Welcome move on escrow and deferred consideration

By Saurabh Tiwari and Saurav Bhaumik, Luthra & Luthra
The Reserve Bank of India (RBI), by a notification dated 20 May, eased restrictions on certain deal structuring tools, i.e. payment of consideration on a deferred basis, escrow and indemnity. To facilitate cross-border M&A,...
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Automatic route for ‘other financial services’

The Reserve Bank of India (RBI) amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (TISPRO regulations), on 9 September to allow foreign direct investment...

Liberalization of FDI in financial services sector

By Dipti Lavya Swain and Prateek Rastogi, Luthra & Luthra
Implementing the change announced in India’s budget for 2016-17, the Reserve Bank of India (RBI) on 9 September liberalized the norms for foreign direct investment (FDI) in the financial services sector. The effect is...

Permanent residency scheme unveiled

On 31 August, the cabinet approved a scheme to grant permanent residency status (PRS) to foreign investors subject to certain conditions specified in the FDI policy. Such a scheme is expected to encourage foreign...

FDI policy amendments approved

On 31 August, India’s cabinet gave ex post facto approval for foreign direct investment (FDI) policy amendments announced by the government on 20 June. The cabinet stated that the amendments are intended to liberalize...

Negotiating joint ventures in FDI restricted sectors

By Sunil Seth and Amit Mehta, Seth Dua & Associates
The foreign direct investment (FDI) policy announced by the Department of Industrial Policy and Promotion regulates the extent of FDI permitted across various sectors in India. While due to progressive liberalization in the FDI...

New round of liberalization follows annual policy recap

By Shinoj Koshy and Neha Sinha, Luthra & Luthra
On 24 June, merely two weeks after the issue of the annual consolidated foreign direct investment (FDI) policy, the government issued a press note (PN 5) introducing amendments that include several relaxations to the...
By Sunil Seth and Vasanth Rajasekaran, Seth Dua & Associates

Ways to mitigate risks in water sector joint ventures

By Sunil Seth and Vasanth Rajasekaran, Seth Dua & Associates
The Indian water sector saw a major overhaul post economic liberalization in the 1990s with the entry of private participation in water sector projects. Subsequently, the formalization of the National Water Policy, 2012, acted...

Update on assured return for foreign investors’ exit

By Manish Gupta and Ashish Ahluwalia, Link Legal India Law Services
India has been one of the hot destinations for global financial investors, and private equity and venture capital investment has been the most popular route for foreign investments in India. What is of paramount...
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Commercial shields

Corporate buyers are warming to the idea of M&A insurance in a bid to protect themselves from transaction risks  James Kelly reports Risky business is forecast to be big business for those offering merger and acquisition...
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Paradise lost

What are the implications of India regaining taxation rights on investments made through Mauritius?  Rebecca Abraham reports On 10 May, when it was announced that India was to regain the right to tax capital gains on...

Five exit challenges for VC and PE investors

By Rajesh Begur, ARA LAW
The period between 2006 and 2008 saw a large number of venture capital and private equity (VC/PE) deals in the Indian market. The exit rights negotiated by VC/PE investors during the haydays of India’s...

Investors eye RBI move to regulate P2P lending

By Dipti Lavya Swain and Advait Nair, Luthra & Luthra Law Offices
The online industry and e-commerce have acted as a game-changer, affecting the nature and dynamic of sectors including transportation, retail, hospitality, etc. It is now perhaps set to do the same to the financial...

FDI limits eased for asset reconstruction companies

On 6 May the Department of Industrial Policy and Promotion issued press note 4, allowing 100% foreign direct investment (FDI) in asset reconstruction companies (ARCs) under the automatic route. Under the earlier FDI policy, FDI...

Press Note 3 of 2016: A level playing field?

By Samir Dudhoria and Ankita Kansil, Luthra & Luthra Law Offices
On account of a legal vacuum on the permissibility of foreign direct investment (FDI) in e-commerce activities being undertaken using a marketplace model, many entities with foreign investment have been operating on the “view”...

DIPP releases guidelines for FDI in e-commerce

The Department of Industrial Policy and Promotion (DIPP) has released press note 3 (2016 series) in order to provide clarity on the existing policy. The press note sets out guidelines for foreign direct investment...