The foreign direct investment fuddle

By Saket Shukla and Akanksha Midha, Phoenix Legal
0
1487
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

April is normally a time when transactional lawyers look forward to breathing easy and recovering from year-end closings and attendant hectic times of March. But this new financial year, the government has kept us all busy with ample food for thought in the form of a new circular intended to be a definitive one-stop foreign direct investment (FDI) manual.

Saket Shukla Parner Phoenix Legal
Saket Shukla
Parner
Phoenix Legal

Circular 1 of 2010 heralds a new mechanism for the notification of all FDI policy, which will be available for the convenience of investors in one comprehensive document, to be reviewed and revised every six months. Such a mechanism will lend certainty, clarity and much needed predictability to a policy framework that has thus far been subject to frequent changes by policymakers. Although a commendable initiative, the new document is not free from ambiguities and leaves unresolved some concerns. We discuss a few of these.

The circular disallows the issue of warrants to non-residents. The earlier policy contained no explicit instruction on warrants and foreign investors invested in them with prior approval from the Foreign Investment Promotion Board (FIPB). It is unclear whether the FIPB will continue to entertain these applications. If not, the embargo will close the door for all non-residents seeking to evaluate the performance of Indian targets before becoming stakeholders.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Saket Shukla is a partner in the Delhi office of Phoenix Legal. Akanksha Midha is an associate at Phoenix Legal in Mumbai. They can be reached at saket.shukla@phoenixlegal.in and akanksha.midha@phoenixlegal.in.

PL

New Delhi

G/F, 15 Birbal Road,

Jangpura Extension

New Delhi – 110 014, India

Tel +91 11 4983 0000

Fax: +91 11 4983 0099

Email: delhi@phoenixlegal.in

Mumbai

First Floor, CS-242,

Mathuradas Mill Compound,

NM Joshi Marg, Lower Parel Mumbai – 400 013, India

Tel: +91 22 4340 8500

Fax: +91 22 4340 8501

Email: mumbai@phoenixlegal.in

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link