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M&A tax takeaways

Tax takeaways

While tweaks to the tax regime announced in the budget may not have grabbed headlines, they will have a discernible impact on mergers and acquisitions. Amit Singhania and Gouri Puri report   Treading on the...
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,...
reforms

Tax reforms introduced to stimulate economy

On 20 September 2019, the president of India, Ram Nath Kovind, promulgated the Taxation Laws (Amendment) Ordinance, 2019, to introduce several major reforms to the direct tax framework, with the objective of rationalizing tax...
SEBI

SEBI updates foreign portfolio regulations

The Securities and Exchange Board of India has released SEBI (Foreign Portfolio Investors) Regulations, 2019, to replace SEBI (Foreign Portfolio Investors) Regulations, 2014. The FPI regulations, 2019 seek to simplify the 2014 regulations by...
Foreign investors permitted to participate in IFSC commodity derivatives

Foreign investors permitted to participate in IFSC commodity derivatives

On 4 January 2017, SEBI issued a circular prescribing guidelines for the participation or functioning of eligible foreign investors (EFIs) and foreign portfolio investors (FPIs) in International Financial Services Centre (IFSC). The circular stipulated that...
RBI-Investor

RBI scraps single-company bond limit for foreign investors

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) released circulars on 15 June 2018 reviewing the requirements for investment by foreign portfolio investors (FPIs) in debt securities....
Sawant-Singh-and-Aditya-Bhargava,-Phoenix-Legal

Voluntary retention route: A halfway measure?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The government and the financial sector regulators, the Reserve Bank of India (RBI) and the Securities and Exchange Board of Indian (SEBI), have considered various measures to ease debt investment rules for foreign portfolio...

Circular on FPI investment limits issued

The Securities and Exchange Board of India (SEBI) issued a circular clarifying the clubbing of investment limits of foreign portfolio investors (FPIs). The circular’s intent was to clarify the clubbing of investment limits of...
foreign-investment-law-firm-business-partnership-agreement-lawyer-india

Ownership rules for FPIs amended

The Securities and Exchange Board of India (SEBI) on 31 December 2018 came out with SEBI (Foreign Portfolio Investors) (Third Amendment) Regulations, 2018. The third amendment regulations have amended regulation 23(3) of the FPI...

Proposed FPI rule changes: A welcome development

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The regulatory environment for investment in corporate debt by foreign portfolio investors (FPIs) has been turbulent with sweeping changes introduced by the Reserve Bank of India (RBI) in April 2018, followed by other changes...

Circular issued to identify beneficial owners

The Securities and Exchange Board of India (SEBI) released a circular on 10 April 2018, which laid down the parameters to identify beneficial owners (BOs) for foreign portfolio investors (FPIs). Pursuant to an interim...
Sawant-Singh-and-Aditya-Bhargava,-Phoenix-Legal

Bond investment guidelines a relief for foreign investors

By Sawant Singh and Aditya Bhargava, Phoenix Legal
Circulars on corporate bond investments by foreign portfolio investor (FPIs), issued by the Reserve Bank of India (RBI) on 27 April and 1 May, disconcerted the financial services sector, particularly the provisions restricting investment...

SNA structures permitted

The Securities and Exchange Board of India (SEBI) issued a circular on 24 May permitting segregated nominee account (SNA) structures in international financial services centres (IFSCs) to further ease market access for foreign investors...

Foreign portfolio investors: New bond rules a surprise

By Sawant Singh and Aditya Bhargava, Phoenix Legal
The foreign portfolio investor (FPI) framework introduced in 2014 was welcomed as a prime example of regulatory streamlining. However, the framework has presented challenges, particularly for investments in Indian corporate debt. Until recently, corporate...
clubbing-of-investment-limits

Clubbing of investment limits explained

The Securities and Exchange Board of India (SEBI) issued a circular on 10 April clarifying the clubbing of investment limits of foreign government-related entities registered as foreign portfolio investors (FPIs) under the SEBI (Foreign...
India-foreign-investment

Due diligence instructions for foreign investors in India

The Securities and Exchange Board of India (SEBI) issued instructions in relation to carrying out necessary due diligence and reporting for foreign portfolio investors (FPIs) through a circular dated 21 March. The circular was...

RBI raises ceiling for derivatives

The Reserve Bank of India (RBI) issued a circular on 26 February permitting persons resident in India and foreign portfolio investors (FPIs), under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations,...

Access norms clarified for FPIs

The Securities and Exchange Board of India (SEBI) issued clarifications in respect to investments by certain category II foreign portfolio investors (FPIs), through a circular on 13 March. The clarifications relate to amendments made on...

FPI limit for interest rate futures

The Securities and Exchange Board of India (SEBI) has allocated a separate limit of ₹50 billion (US$768 million) to foreign portfolio investors (FPIs) for long positions in interest rate futures (IRFs) through a circular...

Markets regulator implements amendments to FPI access norms

The Securities and Exchange Board of India (SEBI) on 15 February notified certain amendments to the SEBI (Foreign Portfolio Investors) Regulations, 2014, by way of a circular, which effected several reforms to facilitate participation...
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...

Direct tax body clarifies indirect transfer provisions

The Central Board of Direct Taxes (CBDT) released a clarification via a circular on 7 November on the applicability of indirect transfer provisions (ITP) on non-resident investors on account of redemption/buyback of shares/interest held...

Corporate bond investment limits: Changes make sense

By Sawant Singh and Aditya Bhargava, Phoenix Legal
On 20 July, foreign portfolio investors (FPIs) and investors in rupee denominated bonds (RDBs) got an unwelcome surprise in the form of a circular from the Securities and Exchange Board of India (SEBI) that...

Criteria relaxed for foreign portfolio investors

The Central Board of Direct Taxes, in a notification on 3 August, liberalized the eligibility criteria for foreign portfolio investors (FPIs) by mandating that conditions specified in clauses (e), (f) and (g) of section...
Guidelines issued for offshore derivative instruments

Guidelines issued for offshore derivative instruments

The Securities and Exchange Board of India on 7 July issued guidelines which prohibit foreign portfolio investors from issuing offshore derivative instruments (ODIs) with derivatives as underlying assets, with the exception of derivative positions...
Changes proposed for offshore derivative instruments

Changes proposed for offshore derivative instruments

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing: (1) to levy regulatory fees on foreign portfolio investors (FPIs) issuing offshore derivative instruments (ODIs); and (2) to prohibit the...
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...
Direct transactions in Indian companies' securities allowed

Direct transactions in Indian companies’ securities allowed

Through a circular on 27 December 2016, the Reserve Bank of India has allowed foreign portfolio investors (FPIs) to acquire non-convertible debentures and bonds issued by Indian companies either directly or in any manner...
Issues related to written-off securities clarified

Issues related to written-off securities clarified

The Securities and Exchange Board of India (SEBI) through its circular dated 2 January has clarified that proceeds arising due to a write-off of securities held by foreign portfolio investors (FPIs) or deemed FPIs...
Applicability of general anti-avoidance rules clarified

Applicability of general anti-avoidance rules clarified

The Central Board of Direct Taxes (CBDT) recently released a circular providing clarifications in response to queries raised by stakeholders on the implementation of general anti-avoidance rules (GAAR). The GAAR provisions, which were introduced in the...
Sawant Singh and Aditya Bhargava Foreign portfolio investors still waiting for easier entry

Foreign portfolio investors still waiting for easier entry

By Sawant Singh and Aditya Bhargava, Phoenix Legal
To deepen the Indian corporate bond market and broaden the sources of funding available to Indian borrowers, the 2016-17 budget announced that foreign portfolio investors (FPIs) would be allowed to invest in unlisted debt...

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...

Authorities to reconsider indirect transfer provision

On 21 December 2016, the Central Board of Direct Taxes (CBDT) released a circular containing responses to questions raised by foreign portfolio investors (FPIs), private equity and venture capital investors and other stakeholders on...

New avenues open for portfolio investment in debt

The Reserve Bank of India (RBI), via a notification dated 17 November 2016, amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, to allow foreign...

Rules for overseas debt instruments clarified

In a circular on 29 June, the Securities and Exchange Board of India issued a clarification stating that those who have subscribed to overseas debt instruments (ODIs) under foreign institutional investor regulations can continue...

More changes from the RBI: Good news for bond market

By Sawant Singh and Aditya Bhargava, Phoenix Legal
In line with its (now) prevailing approach of providing a mix of principle-based and prescriptive regulations, which also take into account market feedback and market conditions, the Reserve Bank of India (RBI) via a...

RBI revises rules for FPI in government securities

The Reserve Bank of India (RBI) through a circular on 29 March has revised and increased the investment limit for foreign portfolio investors (FPIs) in central government securities and state development loans. The revised...
Rupee

Proposed changes to FDI controls under the budget

Up to 49% foreign direct investment will be allowed in the insurance and pension sectors under the automatic route subject to the extant guidelines on Indian management and control to be verified by...

The road ahead for FDI to meet India’s growth target

By Damini Bhalla and Akshay Jain, Luthra & Luthra Law Offices
The prime minister, during “Make in India” week, urged investors to “seize the opportunity and invest” in India. The government’s drive to woo foreign direct investment (FDI) led to reforms in over 15 sectors...

The curious case of FAQs

Ipsita Dutta takes a look at clarifications issued by financial regulators and how to pre-empt the risks they pose The Indian financial sector has seen a steady rise in the number and scope of regulations,...

Deals of the Year 2015

India Business Law Journal showcases the most significant deals and disputes of 2015 and the legal advisers who guided them By Nandini Lakshman India saw more market activity in 2015 than in 2014 but choppy global markets...

The curious case of ‘composite caps’

By Vaibhav Kakkar and Sahil Arora, Luthra & Luthra Law Offices
In a press release dated 16 July, India’s cabinet said that in an attempt to ensure that “uniformity and simplicity are brought across the sectors in the FDI policy for attracting foreign investments”, it...
By Yogesh Chande and Bhavin Gada, Economic Laws Practice

Investment through IPO in township business company

By Yogesh Chande and Bhavin Gada, Economic Laws Practice
India’s foreign investment policy prohibits any sort of foreign investment in real estate business. “Real estate” business means dealing in land and immovable property with a view to earning profit or income. However, “township...

Composite caps proposed for foreign investors

While foreign investment in most sectors is permitted up to 100% under the automatic route according to FDI policy, there are certain sectors to which sectoral caps apply. In some of these sectors there are...

Curbs on foreign investment in bonds amended

The Reserve Bank of India (RBI) through a circular dated 3 February has introduced conditions for foreign portfolio investors (FPIs) to make future investments in and redeem corporate bonds. The circular has introduced the...
india business law journal, deals of the year 2014

Deals of the Year 2014

India Business Law Journal showcases the most significant deals and disputes of 2014 and the legal advisers who guided them. Nandini Lakshman reports Over the past 12 months, traffic increased substantially on the Indian deal street....
By Bijal Ajinkya and Rohit Jayaraman, Khaitan & Co

Budget and private equity: A missed opportunity?

By Bijal Ajinkya and Rohit Jayaraman, Khaitan & Co
India’s recent general elections gave the country its first single party government in 30 years with the Bharatiya Janata Party (BJP) obtaining a simple majority in the Lok Sabha. The overwhelming mandate coupled with...

Warrants and partly paid shares can be used for FDI

A Reserve Bank of India (RBI) circular issued on 14 July provides that warrants and partly paid equity shares issued by an Indian company are now eligible instruments for the purpose of foreign direct...

Investors gain access to Indian preference shares

Through a circular dated 6 June, the Reserve Bank of India (RBI) has permitted Securities and Exchange Board of India (SEBI)-registered foreign institutional investors (FIIs), qualified financial investors (QFIs), foreign portfolio investors (FPIs), and...

SEBI releases new risk management and margin rules

On 15 May, the Securities and Exchange Board of India (SEBI) released a circular on the risk management framework for foreign portfolio investors (FPIs) under the SEBI (Foreign Portfolio Investors) Regulations, 2014. As per this...

Foreign portfolio investors set for regime rollover

The foreign portfolio investments regime in India is set for a rollover on 1 June with both the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) coming out...

Dawn of a new regime for foreign portfolio investors

By Siddharth Shah and Divaspati Singh, Khaitan & Co
The Securities and Exchange Board of India (SEBI) notified the SEBI (Foreign Portfolio Investors) Regulations, 2014, on 7 January, merging the legal regimes for foreign institutional investors (FIIs) and qualified foreign investors (QFIs) into...

Foreign portfolio investor regulations notified

The Securities and Exchange Board of India (SEBI) notified the SEBI (Foreign Portfolio Investors) Regulations, 2014 (FPI regulations), on 7 January. The FPI regulations repeal the SEBI (Foreign Institutional Investors) Regulations, 1995 (FII regulations). Under...

Deals of the Year 2013

India Business Law Journal identifies and analyses the standout deals and disputes of 2013 and reveals the lawyers who guided them. By Nandini Lakshman The past year was one of the worst for the Indian economy...

Deals of the Year 2012

India Business Law Journal celebrates 50 of the most significant deals and disputes of 2012 and reveals the legal architects that guided them to fruition Nandini Lakshman reports from Mumbai The global financial crisis threw up...

Deals of the Year 2011

India Business Law Journal celebrates 50 of the most significant transactions and cases of 2011 and reveals the law firms that guided them to fruition Nandini Lakshman reports from Mumbai The global financial crisis may have...

Deals of the Year 2010

India Business Law Journal showcases 50 of the most significant transactions, court cases and IP enforcement actions of 2010 and reveals the law firms that guided them George W Russell reports The international financial crash that...