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‘Promoter’ does not imply acquisition of control
In a recent adjudication order the Securities and Exchange Board of India (SEBI) held that the disclosure of acquirers as “promoters” in terms of regulation 8(2) of the SEBI (Substantial Acquisition of Shares and...
Bullish about India
French company Vétoquinol has bucked the market by acquiring a major animal healthcare business in India. The deal involved complex intellectual property and licensing agreements, careful tax structuring and tough negotiations
Rahul R Mahajan reports...
Make India investor friendly
Dear Madam,
This is with reference to the Cover story titled Law enforcement published in India Business Law Journal’s July/August 2009 edition. The cover story rightly expresses concern over the enforcement regime and its impact...
FCEBs: A new way to borrow overseas
Indian corporations can raise foreign currency debt either by commercial loans from non-resident lenders through the external commercial borrowings (ECBs) route, or by issuing foreign currency convertible bonds (FCCBs), convertible into equity shares of...
Power games
Buoyed by spiralling demand and recent bilateral agreements, India’s power and defence sectors are primed for growth. Regulatory roadblocks and political tussles continue to frustrate investors, but the long-term opportunities are immense. Alfred Romann reports
India’s...
Steering the deal through
Outbound investments from India to the US face scrutiny on national security grounds. A thorough understanding of the review process and early consultation with regulators are crucial in achieving a successful outcome. Mark Plotkin, David...
The education sector in India
In India, foreign direct investment (FDI) can be made in some sectors under the automatic route (where no prior approval is required), and in other sectors with the prior approval of the Foreign Investment...
Forging international partnerships
In India, partnership firms are a common vehicle for undertaking business activities on a small or medium scale. However, the existing legal framework for partnership firms is not as sophisticated as it is for...
National security exceptions to foreign investment
Foreign investment in India is governed by the applicable foreign investment policy of the government of India, read together with the Foreign Exchange Management Act, 1999 (FEMA), as amended, and regulations and notifications issued...
Investment opportunities in US financial services assets
The Public-Private Investment Program (PPIP) that was announced on 23 March by the US Treasury Department (UST) presents significant opportunities for private investors looking to take advantage of current market uncertainty. The PPIP encourages...
New roadmap for foreign banks in India?
Recent turmoil in the global financial market may force the Reserve Bank of India (RBI) to rethink its roadmap for foreign banks, announced on 28 February 2005. The roadmap proposed a two-pronged approach to...
New FDI policies create confusion in retail industry
India has so far not allowed any foreign direct investment (FDI) in the multi-brand retail industry, due to internal political opposition to the entry of multinational retail giants. Voices both within and outside government...
NBFCs: Can banks still benefit from regulatory arbitrage?
Until recently, non-banking financial companies (NBFCs) were less-stringently regulated than banks by the Reserve Bank of India (RBI), and were thus considered an arbitrage boon in disguise by the financial services sector. NBFCs became...
Indirect foreign investment policy in a state of flux
The Department of Industrial Promotion and Policy (DIPP) has issued fresh guidelines for foreign investments in sectors with caps, such as defence production, civil aviation, broadcasting, insurance and telecoms, which require approval from the...
On with the show
The financial crisis has not brought the curtain down on India’s entertainment sector. Recent reforms have stimulated foreign investment. Opportunities beckon … Gowree Gokhale, Khushboo Baxi and Ranjana Adhikari report from Mumbai
India’s media and entertainment...
The desperate search for liquidity
India is implementing regulatory changes to tackle the credit crunch. How will the moves help cash-strapped corporations restructure their debt portfolios and access new sources of funding? Karan Singh and Ameya Khandge report
India escaped the...
Private sector set to play growing role in insurance
For nearly four and a half decades after India’s independence, the insurance sector was monopolized by the state. Life insurance was nationalized in 1956 and the Life Insurance Corporation of India was set up...
Healthy capital cushion points to future growth
Any discussion of outbound investment from India must begin with the effects of the 60 hours in Mumbai last month. The psychological effect of such a devastating event and its commercial impact is all...
3, 2, 1 … lift off for nuclear power
The recently concluded Indo-US nuclear deal could potentially herald a new era in India’s rapidly growing power sector. The so-called 123 Agreement between India and the US enables access to reliable and uninterrupted nuclear...
Opening the vault
India’s banking sector is on the verge of a second wave of liberalization. Coming amid a global financial crisis, how will domestic and international banks – and their legal advisers – respond to the challenge? Barney...
Deals of the Year 2008
At the end of a tumultuous year, India Business Law Journal celebrates the top transactional achievements of 2008 and the law firms that made them happen. Chris Crowe reports from London
India’s transactional clout was drastically reined...
Shipping and logistics crucial areas for India
The Indian peninsula is strategically located between cargo movements, to and from the European Middle East in the West and the Pacific Asia rim in the East. India has 7,517 kilometres of coastline studded...
Coming full circle: Novel financing structures needed
Historically there have been restrictions on financing by banks. Presently, the Reserve Bank of India (RBI) has capped banks’ credit exposure limits at 15% of their capital funds, in the case of a single...
FDI in print media promises readers more variety
The Indian press is undergoing continued liberalization following the government’s decision in 2002 to allow foreign direct investment (FDI) in print media. The decision to permit 26% FDI came with several conditions aimed at...
Retail boom ignites demand for improved logistics
The Indian retail sector can be broadly classified into organized and unorganized retail. The former has only just taken off with the advent of professionally managed departmental stores and malls, however, the bulk of...
Liberalization key factor in soaring success of aviation
After independence, the aviation sector in India was exclusively run as a government monopoly. With the liberalization of the aviation sector, the industry has witnessed a transformation with the entry of privately owned full-service...
A passage to India: Tourism boosted by FDI
Economic liberalization has given new impetus to the hospitality industry with the Government of India permitting 100% foreign direct investment (FDI) in hotels and the tourism sector under the automatic route.
FDI and technical collaboration...
India’s telecom network takes a paradigm stride
The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. The sector has undergone a crucial metamorphosis with significant policy reforms.
Telecommunications is driving growth at a...
Rationalizing FDI policy for petroleum and gas
The Indian oil and gas sector is one of India’s core industries and has a very significant contribution towards the country’s economy. In the recent past, it has been observed that the consumption of...
‘Blended’ legal solutions
Dear Sir,
Your recent article Jewels in the crown (IBLJ volume 2, issue 1) on the best foreign law firms for India-related work was both interesting and informative. Thank you for listing Berwin Leighton Paisner...
Rationalizing FDI policy for petroleum and gas
The Indian oil and gas sector is one of India’s core industries and has a very significant contribution towards the country’s economy. In the recent past, it has been observed that the consumption of...
India’s telecom network makes a paradigm shift
The Indian telecom network is the eighth largest in the world and the second-largest among emerging economies.
The sector has undergone a crucial metamorphosis with significant policy reforms.
Telecommunications is driving growth at a feverish pace....
Integrating and optimizing logistics activities
Supply chain management (SCM) encompasses the planning and management of all activities, involved in sourcing, procurement, and conversion; and all logistics management activities which means having the right thing, at the right place, at...
Balanced policies propel pharma sector growth
The pharmaceutical industry in India, with its rich scientific talent pool, low costs of production, research and development (R&D), and an increasing balance of trade and research capabilities, supported by an intellectual property protection...
FDI limits relaxed to boost aviation investment
Civil aviation is one of the fastest-growing sectors in India’s transport industry; its domestic market alone saw dramatic growth, with a 25% increase in the number of flights scheduled in May 2007 compared to...
Free trade and warehousing zones offer myriad benefits
One of the prerequisites of providing total integrated logistics solutions is well equipped warehousing. The necessity to store perishable goods generates a need for convenient and ample warehousing.
The management of warehouses is crucial for...
Revised guidelines clarify telecoms investment policy
The telecom sector in India has shown impressive growth over the past decade. Observers charting the country’s progress in the sector have found that India has the fastest growth in the number of telecom...
Good times ahead
Dear Sir,
I must compliment India Business Law Journal on its coverage of the Indian real estate sector (April 2008). Indeed, India’s real estate market is currently a cynosure to all foreign investors and will...
Setting up shop
Despite a restrictive regulatory regime and deep political sensitivities, now is the time for foreign retailers to establish a foothold in India
Ben Frumin in New Delhi explains
Against the colossal backdrop of a Bollywood film...
Airline industry is growing but it could still use a lift
As in the case of Indian sea ports, there is a mismatch between the growing freight and passenger market and the infrastructure constraints in India’s domestic and international airports.
With annual passenger growth of 20%...
Private industry gears up for bigger role in defence sector
In a landmark policy change, the defence industry was thrown open to the private sector in May 2001 (Press Note 4 of 2001 Series). The government allowed 100% equity with a maximum 26% foreign...
Financing gambling operations not easy
Foreign direct investment (FDI) has been recognized as an important instrument for advancing India’s foreign exchange resources, its technological base and for globalizing the Indian economy. Gambling (gaming), lottery business and betting are not...
Buying land in India: From concept to completion
Sumes Dewan tells the story of Astra Infra to illustrate how innovative structures may overcome the hurdles associated with acquiring land
In March 2005, significant liberalizations to India’s real estate sector were set forth by...
The road to REITs and REMFs
Gautam Mehra of PricewaterhouseCoopers evaluates recent moves to introduce collective investment schemes into Indian real estate
Since April 2004, India’s real estate market has been open to investment by institutional investors and high net worth...
Defying the laws of economics
Despite the sub-prime crisis in the US and a restrictive regulatory regime at home, Indian real estate continues to boom. Can it last? Alfred Romann reports
Nandan Nelivigi, a New York-based partner at White & Case,...
Legislative and regulatory update – April 2008
The budget
India’s latest budget, unveiled by Finance Minister P Chidambaram on 29 February, includes a number of tax provisions that impact businesses and individuals.
The budget had been expected to include significant changes to the...
Reform’s unstoppable march
As elections loom, a shaky coalition government going slow on reform is no surprise. But the fact that it is still trying bodes well for India
One conclusion that India-watchers may glean from this month’s...
Fighting for funds
Market turbulence has forced many Indian corporates to re-evaluate their domestic and international capital-raising strategies. But in spite of the difficulties, there is no shortage of investors willing to gamble on India, Chris Crowe reports...
FDI route facilitates more real estate investment
India can be acknowledged as one of the fastest growing economies in the world and real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors.
This...
FDI cleared to climb to new heights
The latest reforms to India’s foreign investment regulations are significant because they tackle sensitive sectors that the government has previously been reluctant to liberalize. But concerns persist over the scope of the changes and...
The best is yet to come
India has made huge strides in reforming its economy. Serious challenges persist but there is also great cause for optimism, writes Vijaya Sampath, group general counsel at Bharti Enterprises
After decades of the “Hindu”...
Legislative and regulatory update – March 2008
Foreign investment
In January, the government proposed the liberalization of foreign direct investment (FDI) in certain key economic sectors.
The ceiling on foreign investment in public sector petroleum refining has been raised from 26% to 49%...
Building the future
Foreign investors are flocking back to India’s once-pariah infrastructure sector. They must tread carefully, but this time the opportunities are real, Ben Frumin reports from New Delhi
One minute. That’s all it took on 15 January...
Third party logistics gains momentum
Third party logistics (3PL), or logistics outsourcing, refers to outsourcing transportation, warehousing and other logistics related activities to a 3PL service provider that were originally performed in-house.
Logistics outsourcing is used for the logistics activities...
Cautious moves towards greater FDI in retail
The retail sector in India is highly fragmented and organized retail in the country is at a nascent stage. Recently, however, it has emerged from the shadows and become one of the most talked-about...
The turbulent tale of Project Windstorm
In the first of a two-part series, Bob Nelson uses a fictional case study to illustrate the broad strategic considerations that are necessary when developing and financing an infrastructure project in India
In the 1990s,...
Easing norms in the insurance sector
Gross foreign direct investment (FDI) inflows during April 2007 totalled US$1.6 billion as compared with US$700 million a year ago.
This large year-on-year hike speaks well of the efforts and policies of the government of...
India in 2008
Shardul Thacker previews the regulatory changes that foreign and domestic businesses may witness during the coming year
India’s fast-moving economy hinges, to a large degree, on timely legislative reform and regulatory development. Authorities must stay...
Continuing liberalization increases India’s appeal
In recognition of the important role of foreign direct investment (FDI) in driving economic growth, the Government of India initiated numerous economic and financial reforms in 1991, transforming the nature of the Indian economy...
Foreign direct investment expands retail trade
The retail trade sector in India has undergone significant transformation from small, unorganized family-owned retail units to organized retailing pursuant to the influx of international retailers in domestic markets.
Organized retail trade, predominantly concentrated in...
Legislative and regulatory update – September 2007
Intellectual property
In a landmark decision on 6 August the Chennai High Court rejected Swiss firm Novartis AG’s challenge of a key provision of the 2005 patent law. Dismissing Novartis’ petition, the bench observed...
Taking aim
New money is targeting India from surprising directions
George W Russell investigates
Globalization is just a word. But when it takes the form of surging foreign direct investment (FDI) into India from sources better known...
Legislative and regulatory update – July/August 2007
Securities
An Airports Economic Regulatory Authority (AERA) could be created in the near future after the Union Cabinet approved in May the passing of the AERA Bill, 2007. Under the bill, the authority would review...
Foreign VC funds may wish to register with SEBI
The Indian media are flooded daily with explosive figures earned by venture capital investors. Increasingly, new domestic and offshore funds are being formed with a specific India and industry focus. One avenue open to...
Development of India’s logistics industry
India is the ninth largest retail market in the world. Although this sector is still dominated by small retail players, recent times have seen large domestic and global firms launch retail projects that are...
Influx of FDI could drive real estate market
In recent years, the government has moved to promote the use of public private sector partnerships in building the country’s infrastructure and liberalize foreign direct investment (FDI) in real estate.
FDI up to 100% is...
