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    December 18, 2009
    Show AI Summary
    Automatic approval for foreign royalty and technology payments permitted, subject to foreign exchange rules and post-reporting.
    Policy permits automatic approval for royalties, lump sum technology fees, and payments for use of trademarks/brand names under foreign technology collaborations, subject to Foreign Exchange Management (Current Account Transactions) Rules and any amendments; a post reporting system for such transfers and use will be notified. The change modifies and supersedes specified earlier press notes that had imposed limits or prior approval requirements.
    October 31, 2009
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    Fiscal stimulus exit may be decided after the quarter; political consensus and GST timing will influence withdrawal.
    The government signalled a prospective fiscal stimulus exit after the October-December quarter, tying withdrawal timing to quarterly growth outcomes, the Reserve Bank's initial monetary tightening, and the expected implementation timetable for the Goods and Services Tax; it advocates country-specific exit plans, stresses fiscal consolidation to restore the fiscal deficit to prudent limits, and conditions decisive withdrawal on securing a broad political consensus to enact reforms in labour, insurance and financial sectors.
    October 28, 2009
    Show AI Summary
    Statutory Liquidity Ratio increase prompts calibrated exit from stimulus while key interest rates remain unchanged.
    The Reserve Bank raised the Statutory Liquidity Ratio as a first step in a calibrated exit from an easy money stance while leaving key interest rates unchanged; the increase is unlikely to materially affect banks because they already hold government securities above the new requirement, the average SLR being higher than the revised level. The Bank emphasized sequencing withdrawal to protect recovery while addressing inflation expectations and maintained its growth forecast while increasing its inflation estimate.
    October 21, 2009
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    Soft monetary policy expected as government signals preference for maintaining an accommodative central bank stance despite inflationary pressure.
    Finance Ministry urged continuation of the current soft monetary policy ahead of the central bank's policy review, expressing expectation that the bank would maintain its accommodative stance despite noted food-driven inflationary pressures, and highlighted upcoming consultations between senior government and central bank officials prior to the review.
    October 8, 2009
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    Currency appreciation signals economic strength; government says limited intervention while movements remain non-volatile and fundamentals-driven.
    The statement treats rupee appreciation as evidence of economic strength from fundamentals and capital inflows, and explains that while the RBI or government can intervene, such foreign exchange intervention is constrained when movements are non-volatile, two-way, and driven by fundamentals.
    September 30, 2009
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    Foreign investment caps in commodity exchanges extended to allow final compliance and mandatory reporting, non-compliance treated as exchange law breach.
    Guidelines prescribe a composite foreign investment ceiling in commodity exchanges, limit individual foreign holdings, and require prior approval where applicable. Existing exchanges exceeding permitted levels were required to divest the excess and were granted extended transition periods to regularise holdings. Exchanges must submit status reports of foreign investment and equity structure and describe steps taken to comply to designated departments and regulators. Failure to comply within the final transition period will constitute a breach of foreign exchange law.
    August 18, 2009
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    Foreign Direct Investment approvals: ten proposals cleared while others were deferred, rejected, withdrawn, or referred upward.
    Government action on foreign direct investment proposals: ten proposals approved across multiple sectors with specified issuance or transfer mechanisms (including joint ventures, preferential allotment, warrants and convertible bonds), nine proposals deferred for further scrutiny (including defence, share transfers, ex post approvals and security clearance issues), three proposals rejected for non compliance with capitalization or conditions, one withdrawn, and one high value proposal referred to the Cabinet Committee on Economic Affairs for consideration.
    August 3, 2009
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    Foreign investment calculation rules clarified and government approval required when ownership or control shifts to non residents.
    Guidelines set a uniform methodology for calculating total foreign investment, clarifying treatment of direct and indirect holdings across sectors except where specific statutes apply, and require government/FIPB approval in capped sectors when ownership or control transfers to non-residents or when Indian companies make downstream investments, with applicability to the banking sector.
    August 3, 2009
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    Company law reform consolidates incorporation, governance, e compliance and insolvency into a unified statutory framework for stronger accountability.
    Comprehensive revision consolidating company incorporation, governance, compliance, restructuring and winding up under a centralized statutory framework administered by the Central Government; enabling electronic filings and faster incorporation with director identification, strengthening governance through shareholder democracy, independent directors, Key Managerial Personnel, board committees and independent valuation, criminalizing insider trading, mandating consolidated financials, and providing a unified insolvency and enforcement regime with specified penalties, recovery for fraud, investor protection measures and specialized tribunals.
    July 22, 2009
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    Foreign direct investment rules liberalised allowing broad automatic entry; regulatory clarifications and penalties under FEMA apply.
    FDI policy permits up to full foreign ownership on the automatic route in most sectors, supported by February 2009 Press Notes clarifying calculation of total foreign investment, transfers of ownership or control in capped sectors, and downstream investment by Indian companies. The Department of Economic Affairs requested further examination from the Department of Industrial Policy & Promotion on issues including those raised by the Reserve Bank of India. The FDI framework is implemented through the Foreign Exchange Management Regulations, 2000 under FEMA, 1999, and contraventions are subject to penalty after adjudication.
    July 1, 2009
    Show AI Summary
    Foreign Direct Investment approvals and regularisations across sectors, with multiple deferrals and rejections under prevailing investment norms.
    Government approved 21 FDI proposals totaling approximately Rs. 84.90 crore across multiple sectors, involving equity acquisitions, WOS formation, joint ventures, FC approval amendments and fund investment arrangements. Several approvals referenced Press Note 1 of 2005. Fourteen proposals were deferred for issues including ex-post-facto regularisation, instrument conversions, increases in foreign equity and capitalization relaxations. Seven proposals were rejected where requested amendments or exemptions to existing approvals were not granted. One proposal was noted as not requiring fresh approval for downstream investment under the relevant Press Note provision.
    June 18, 2009
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    Service tax on financial services: Parliament may tax hire purchase and leasing service charges despite state sales tax on goods.
    The court held Parliament may levy service tax on service charges rendered by financiers in hire purchase and leasing arrangements while States may levy sales tax on the sale or deemed sale of goods, because financiers provide distinct banking and financial services secured by hypothecation and collectors separate service charges (with interest excluded), so the two levies operate on different elements of the transaction without constitutional conflict.
    June 9, 2009
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    Foreign Direct Investment approvals and procedural advisories issued, including deferrals, rejections, automatic route guidance and central bank referrals.
    Government approvals, deferrals, rejections and procedural advisories from a Foreign Investment Promotion Board cycle are summarised: 23 FDI proposals were approved across multiple sectors involving equity subscriptions, joint ventures, fund investments, warrant issuance/conversion, share transfers, buy backs and downstream investments, with several approvals noting compliance with Press Notes and some regularising prior investments. Thirteen proposals were deferred, two rejected, some applicants were advised to use the automatic route or to approach the central bank, one proposal was returned pending policy notification, and one proposal was withdrawn.
    May 4, 2009
    Show AI Summary
    Foreign Direct Investment routes define when automatic entry or FIPB approval and single window clearance apply.
    Foreign Direct Investment is channelled via the Automatic Route, which requires no prior approval and mandates post facto Reserve Bank of India filings where full foreign ownership or investments within sector caps are permitted, or via FIPB Approval where proposed shareholding exceeds caps or the activity falls in restricted or industrially licensed sectors; the FIPB provides single window screening and clearance and is used where policy clarity is lacking.
    May 4, 2009
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    Repatriation rights: capital, appreciation and dividends can be remitted from India subject to tax and regulatory conditions.
    Foreign investment is governed by the Foreign Exchange Management Act, treating foreign-participated Indian companies as domestic for exchange control; repatriation of capital and appreciation is permitted when investments are on a repatriation basis subject to taxes, while dividends and profits are repatriable after tax compliance without separate RBI permission if conditions are met. Non-residents permitted to operate in India may acquire business necessary immovable property but must file a prescribed declaration within ninety days; foreign nationals with specific RBI approval require prior RBI permission to transfer such property. NRIs may purchase immovable property excluding agricultural/plantation/farmhouse and transfer it within prescribed residency and identity limits.
    February 18, 2009
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    Financial inclusion: expand no-frills bank accounts and credit access using intermediaries to reach rural households.
    Government measures to expand basic banking and credit in rural areas require banks to offer no-frills basic accounts with nil or low minimum balances and to issue General Credit Cards without security or end-use conditions. Small borrowers settled under one-time settlement schemes are eligible for fresh credit. Banks may use NGOs, self-help groups, microfinance institutions and other civil society organisations as intermediaries to provide financial services. Scheduled Commercial Banks and Regional Rural Banks were advised to add rural household accounts during the year, and public sector banks largely achieved their targets.
    February 18, 2009
    Show AI Summary
    Overseas borrowing limits remain unchanged after policy review; approval route allows additional borrowing subject to conditions.
    The overseas borrowing limit for Indian companies (excluding hotels, hospitals and software) allows External Commercial Borrowings for rupee and foreign currency expenditure under an Automatic Route up to a prescribed ceiling per financial year, with an additional amount available under an Approval Route subject to conditions including an average maturity requirement; ECB policy and overall limits are reviewed regularly and were not increased in the January 2009 modifications.
    February 2, 2009
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    Eligibility to acquire immovable property: authorities must verify FEMA residency and visa status before registering transfers.
    Authorities must verify FEMA eligibility, inspect travel documents and visa to establish intention to stay, and may review prior registrations before registering sale or purchase of immovable property involving persons resident outside India. Foreign companies with an established branch may acquire property necessary or incidental to business subject to Regulation 5. Foreign nationals meeting the statutory residency and intention-to-stay criteria are treated as person resident in India and may acquire immovable property; Indian citizens and persons of Indian origin resident abroad may acquire property other than agricultural land, plantation or farmhouse.
    January 23, 2009
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    Foreign Direct Investment source concentration: Mauritius leads cumulative equity inflows, with figures covering specified inflow routes and inclusions.
    Foreign Direct Investment data reports Mauritius as the largest source of cumulative equity inflows into India through October 2008, with the fact sheet ranking top investing jurisdictions and showing each country's percentage share in rupee terms. The release specifies that reported inflows include investments routed through FIPB/SIA, RBI's Automatic Route, acquisition of existing shares, and also capture NRI schemes, stock swaps and advances pending issue of shares, with cumulative country-wise totals for April 2000 to October 2008 provided in an annexure.

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      21 FDI proposals approved

      July 1, 2009

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      Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on June 19, 2009, Government has approved 21 Proposals of Foreign Direct Investment amounting to Rs. 84.90 Crore approximately.  The proposals relate to Ministries/Departments, namely, Chemical & Petrochemicals, Commerce, Economic Affairs, Industrial Policy & Promotion, Information & Broadcasting, Power, Urban Development, Information Technology, and Telecommunication.  

                  The following 21 proposals have been approved.                                                      

                  Sl. No.

      Name of the applicant

      Particulars of the proposal

      FDI/NRI inflows (Rs. In Crore)

      COMMERCE

      1

      M/s Nilorngruppen AB, Sweden

      To acquire 100% equity shares to carry on manufacture and wholesale cash and carry trading business.  Proposal attracts Press Note 1 of 2005.

      0.01

      2

      M/s BASF SE, Germany

      To acquire equity shares by way of an "Open Offer" to undertake manufacturing and trading of speciality chemicals and in commoditized products.

      63.00

      3

      M/s Dunham-Bush International Pte Ltd., Singapore

      To set up a WOS to carry out the activities relating to: - (i) manufacture, sale, repair, hire of air conditioned plants, all sorts of refrigerators, cooling appliances, apparatuses and machinery, and all component, parts, accessories, articles and fittings, and (ii) wholesale/cash & carry trading in all sorts of refrigerators, cooling appliances, apparatuses and machinery, and all component, parts, accessories, articles and fittings.  The proposal attracts Press Note 1 of 2005.

      1.00

      ECONOMIC AFFAIRS

      4

      M/s Edipresse Asia Limited (EAL), Hong Kong

      To subscribe either by itself or through its affiliates, subsidiaries or group companies to  equity shares of the issued and paid-up share capital of the joint venture company proposed to incorporate in India to carry out the business of publishing, ownership, promotion, marketing and distribution of the specialty magazines (for consumer and trade media).

      0.29

      5

      M/s Autostrade per I'Italia S.p.A and Spea Ingegneria Europea S.p.A

      To set up a Wholly owned subsidiary, which will act as pure investing company for infrastructure projects.

      0.05

      6

      M/s Compagnie Financiere Michelin ('CFM') & Nitor S.A ('Nitor'), Switzerland

      To acquire 100% of the paid up share capital of the Indian Company to carry out the activities relating to manufacturing of tyres and tubes.    The proposal attracts Press Note 1 of 2005.

      0.01

       HEALTH

      7

      M/s Femi Medical Services Ltd., Israel

      To acquire the entire initial share capital from the existing shareholders.  The proposal attracts Press Note 1 of 2005.

      0.01

      HEAVY INDUSTRY

      8

      M/s Kusakabe Electric & Machinery Co. Ltd., Japan

      To set up a Wholly Owned Subsidiary (WOS) to carry out the activity relating to manufacturing of machinery for tube & pipe mills and other associated equipment.  The proposal attracts Press Note 1 of 2005.

      05.00

      INFORMATION & BROADCASTING

      9

      M/s G+J International Magazines GmbH, Germany

      To establish wholly owned subsidiary in India by way of acquisition of 100% shares to carry out the  business of publishing specialty magazines, periodicals and journals in various segments.  

      0.01

      STEEL

      10

      M/s Metal One Corporation, Japan (No.125/2009-FC.I)

      To set up a Joint Venture to undertake the activities relating to slitting, shearing, leveling, blanking, oiling, and core cutting of ESS and non-ESS flat steel; and sale of the ESS and non-ESS flat steel.  The proposal attracts Press Note 1 of 2005.

      5.14

      11

      M/s Temcor Rollwell Domes Pvt. Ltd., Mumbai  

      To induct foreign investment in investing company.

       

      0.76

      INDUSTRIAL POLICY & PROMOTION

      12

      M/s Ventureeast Trustee Company Pvt. Ltd.

      (i) To accept contributions upto a limit of USD 2 million into the Fund under the foreign direct investment route and to issue Units in the Fund; (ii) to permit the Fund to make investments in securities of the Indian companies; and (iii) to permit the Fund to distribute income realized on its investment under the automatic route, subject to payment of applicable taxes in India.

      9.61

      PETEROLEUM & NATURAL GAS

      13

      M/s SHV Energy India Pvt. Ltd.

      To carry on the additional business of LPG equipment and LPG Services.

      No Fresh Inflow

       TELECOMMUNICATIONS

      14

      M/s Tikona Digital Networks Pvt. Ltd.

      To amend the FC approval.

      No Fresh Inflow

      15

      M/s Vodafone Essar Spacetel Pvt. Ltd.

      To include additional item of activity in FC approval.  The company is engaged in the Cellular mobile telephone services and Unified Access Service Provider.

      Not Indicated

      16

      M/s Vodafone Essar South Ltd.

      Inclusion of 'Internet Service Provider' as an additional item of activity in the FC approval.

       

      Not Indicated

      COMMERCE

      17

      M/s Basell Polyolefins India Pvt. Ltd., Mumbai

      To carry out wholesale trading and manufacturing activities.  The proposal attracts Press Note 1 of 2005.

      No Fresh Inflow

      18

      M/s Esys Information Technologies Pvt.  Ltd.

      To make an amendment in the FC approval by including some more trading/manufacturing activities.

      No Fresh Inflow

      ECONOMIC AFFAIRS

      19

      M/s Ortus Infratel and Holdings Pvt. Ltd., New Delhi

      Induction of FDI in the companies engaged in telecom infrastructure providers (Category-I) and conversion of operating company into operating cum holding company to make downstream investments.

      0.01

      20

      M/s Eros International Media Pvt. Ltd., Mumbai

      Ex-post-facto approval  for the investment already made by way of purchase of shares as the proposal had attracted the provision of Press Note 18 of 1998 (now Press note 1 of 2005).  

      No Fresh inflow

       INFORMATION & TECHNOLOGY

      21

      M/s BGS Smartcard Systems (I) Pvt. Ltd.

      To amend the FC approval.

      No Fresh Inflow

                  The following 14 (Fourteen) proposals have been deferred:

      Sl. No

      Name of the applicant

      Particulars of the proposal

      1

      M/s Coles Cranes Group Ltd., U.K

      To purchase equity shares instead of warrants through Stock Exchange(s) and/or through block deal remitted already for the purchase of warrants.

      2

      M/s Teesta Urja Ltd., New Delhi

      Ex-post facto approval to regularize the allotment of equity shares on partly paid basis.

      3

      M/s IHHR Hospitality Pvt. Ltd., New Delhi

      Ex-post facto approval to regularize the allotment of equity shares on partly paid basis.  

      4

      M/s Powermax Communications Pvt. Ltd., New Delhi

      To increase in the foreign equity participation from the existing 49% to 74% in the enhanced paid up capital.  The company is engaged in providing broadband communication networks, systems, products and services, power transmission and distribution management systems and services and smart grid networks, systems, services and products.

      5

      M/s IL&FS Trust Company Ltd., Mumbai

      To subscribe to Units of the Trust in consideration of contribution of assets to the Trust at the fair value determined and to permit the Trust to accept contribution in kind and to allow the Trust to continue to hold investment in Multi Commodity Exchange of India Limited (MC).  

      6

      M/s Exensys Software Solutions Ltd.

      Ex-post facto approval for issuance of warrants convertible into equity shares.

      7

      M/s Interpublic Mauritius Ltd., Mauritius

      To make investment of 50% equity by way of subscribing to equity shares.  The proposal attracts Press Note 1 of 2005.

      8

      M/s Capricorn Infrastructure Pvt. Ltd., Mumbai

      To seek relaxation in the clause (b) of Press Note 2 of 2005 with respect to minimum capitalization and asking the permission to receive balance amount as fresh inflow of funds to achieve the minimum capitalization norms.

      9

      M/s Zee Entertainment Enterprises Ltd.

      Transfer of fully paid equity shares to an overseas entity belonging to the Promoters Group, for up-linking a non-news and current Affairs TV channel.

      10

      M/s High Mark Credit Information Services Pvt. Ltd.,

      To provide for enhancement of permitted foreign investment to 40% of the issued share capital.

      11

      M/s KVK Energy & Infrastructure Pvt. Ltd.,

      To raise additional FDI from an existing investor by way of issue of Compulsorily Fully Convertible Debentures.     

      12

      M/s India Rizing Fund

      To amend the FC approval.

      13

      M/s United Breweries (Holdings) Limited, Bangalore

      Ex-post facto approval for (i) issue of fully convertible equity warrants, and (ii) for allotment of fully paid up equity shares on conversion of convertible equity warrants.

      14

      M/s Unitech Wireless (Tamilnadu) Pvt. Ltd

      To increase the foreign shareholding up to 74%.

           The following 07 (Seven) proposals have been rejected:

      Sl. No

      Name of the applicant

      Particulars of the proposal

      1

      M/s Blaser Swisslube India Pvt. Ltd.,

      To delete the condition of test-marketing and accord approval for temporary exemption from manufacturing activity and allow them to continue only with the business of cash and carry wholesale trading.

      2

      M/s SKR BPO Services Pvt. Ltd.

      The downstream acquisition of shares by Intelenet in Sparsh be considered valid and the approval be modified by deletion of the requirement to approach the RBI for compounding.

      3

      M/s Tata Teleservices Ltd.

      To amend the FC approval.

      4

      M/s Bharti Telemedia Ltd

      To amend the FC approval.

      5

      M/s NTT Docomo Inc Japan

      To amend the FC approval.

      6

      M/s Matrix Enport Holding Pvt. Ltd, Hyderabad

      To allot and issue shares to the Indian companies and/or their respective affiliates fully paid up equity shares and/or compulsorily convertible preference shares and to invest in other companies engaged in such business falling under the same sector.

      7

      M/s Nagarajuna Construction Ltd.

      To amend the FC approval.

      The following 01 (One) proposal has been noted in terms of para 8 of PN 2 of 2009 whereby no approval is now required for downstream investment made in the past.

      Sl. No.

      Name of the applicant

      Particulars of the proposal

      FDI/NRI inflows (Rs. In Crore)

      1

      M/s Seagram India Ltd.

      Conversion of operating company into an operating cum holding company to make further downstream investment.

      No Fresh Inflow

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