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Reserve Bank of India liberalizes the framework of External Commercial Borrowings

The Reserve Bank of India (RBI) has rationalized the end-use provisions of External Commercial Borrowings (‘ECBs’) vide RBI/2019-20/20 A.P. (DIR series) Circular no. 04 dated July 30, 2019 (‘Circular’). Key changes introduced by the RBI through the Circular are reproduced herein below: 1.) ECBs with a minimum average maturity period (‘MAMP’) of 10 (ten) years […]

Parliament passes the Insolvency and Bankruptcy Code (Amendment) Bill, 2019

The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 (“Bill”) was passed by the Rajya Sabha on 29th July, 2019 and thereafter the Lok Sabha on 1st August 2019 provided its assent to the Bill, to amend the Insolvency and Bankruptcy Code, 2016 (“Code”). The Bill seeks to to inter-alia, enhance the time limits for completion of the corporate […]

Introduction of Web-Based services for filing of DIR-3 KYC

The Ministry of Corporate Affairs (MCA) recently on 25th July 2019 issued the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019. As per the amended rules the MCA introduced web – based services for filing of the DIR-3-KYC-WEB on the MCA portal. The key-points introduced as per the amended rules are as follows: The […]

Union Government reduces the rate of ESI contribution

On 13th June 2019, the Ministry of Labour and Employment, Government of India, issued a notification no. G.S.R. 423 (E) amending Rule 51 of the Employees’ State Insurance (Central) Rules 1950 to reduce the rate of contribution required to be made by both employers and employees’ under the Employees’ State Insurance Act, 1948 (Act) from […]

Union Budget 2019: Highlights of FDI regime

Union Finance Minister Ms. Nirmala Sitharaman whilst presenting the Union Budget 2019 on 5th July 2019, announced that 100% Foreign Direct Investment (‘FDI’) for insurance intermediaries will be permitted by the Government. The hike is an immense one since currently the FDI for insurance intermediaries stands at 49% under the automatic route. Insurance intermediaries include […]

Annual Reporting of FLA now moved to FLAIR web portal

With the objective to enhance the security level in data submission and to further improve the data quality, the Reserve Bank of India (RBI) through its circular dated 28 June 2019 (RBI Circular) has replaced the present email-based reporting system for submission of the Foreign Liabilities and Assets (FLA) return, with a web-based Foreign Liabilities and […]

FDI Policy For Defence 2017: Will It Attract More Investment?

  There are no surprises for the defence sector in the latest consolidated Foreign Direct Investment (FDI) Policy circular issued by the Department of Industrial Policy and promotion (DIPP) as a part of its annual exercise on 28 August 2017. Though a comparison with the last year’s circular gives the impression that the FDI cap […]

CANCELLATION AND REVIVAL OF SPIKE PROGRAMME: LESSONS TO BE LEARNT

    Retraction of RFPs or cancellations of the defence deal at advanced stage has been quite a regular feature of the procurement system in India. To put the record straight, the MoD should mention the reasons for cancellation to obviate imbroglio and rumours, which damage the image of not just the Vendor but also […]

Foreign Funding: Regulatory Compliances

The Foreign Contribution Regulation Act (“FCRA”), 2010 was enacted for regulating the inflow of foreign contribution by individuals, associations or companies and to prohibit acceptance and utilisation of foreign contribution for any activities detrimental to the national interest. FCRA is implemented by the Ministry of Home Affairs which keeps a check on any unwarranted foreign contribution. […]

Changes in foreign direct investment in 2016

Introduction To boost Foreign Direct Investment in India, the government has been constantly liberalizing various sectors. Recently certain other sectors, including the much sought after e-commerce was also opened to foreign investors. The snapshot of the recent changes to the Foreign Direct Investment policy are as follows:   1. Foreign Direct Investment ine-commerce sector: Vide […]

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