Big money and easing target foreign investors

By Siddharth Hariani and Davis Kanjamala, Phoenix Legal

Among the various factors which have contributed to the Indian growth story, infusion of funds from foreign investors would rank near the top. To fulfil the country’s much-touted potential as an economic superpower in the years to come, regulatory focus in the recent past has been on streamlining the procedure for such inflows.

Siddharth Hariani Partner Phoenix Legal
Siddharth Hariani
Phoenix Legal

A strong motivation for such reform is the need to finance large-scale infrastructure projects. The government intends to invest US$1,000 billion during the Twelfth Five-Year Plan (2012-2017), with half of that amount expected to be financed by the private sector.

A slew of reforms liberalizing regulations pertaining to investment in the infrastructure sector by foreign players have been introduced. Among them is a five-fold increase of the investment limit for foreign institutional investors (FIIs) in non-convertible debentures (NCDs) and bonds issued by Indian companies in the infrastructure sector – from US$5 billion to US$25 billion.

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Siddharth Hariani is a partner and Davis Kanjamala is an associate at the Mumbai office of Phoenix Legal.


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