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        Case ID :

        Government Approves two (2) Proposals of Foreign Direct Investment (FDI) Amounting to ₹ 2.19 Crore Approximately; Recommends one Proposal for Approval of CCEA

        June 14, 2016

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        Press Information Bureau

        Government of India

        Ministry of Finance

        14-June-2016 16:34 IST

        Based on the recommendations of Foreign Investment Promotion Board in its 235thmeeting held on 20th May 2016, the Government has approved two FDI proposals involving FDI of ₹ 2.19 crore, and recommended one proposal for approval of the Cabinet Committee on Economic Affairs.

         1.  The following two (02) proposals have been approved:

        S. No

        Item No

        Name of the applicant

        Gist of the proposal

        Sector

        FDI (Rs.  crore)

        1

        3

        M/s Aurobindo Pharma Limited

        M/s Aurobindo Pharma Limited has sought an approval for the following categories:
         (i) Grant of ESOPs to non-resident employee of Aurobindo Pharma Limited, after issue of Press Note 3 of 08.11.2011, which remained unexercised as on 11.06.2015, and against which no shares were issued upto as on 11th June 2015,(which could be vested and exercised later on and shares issued against them at that stage), totalling to 2,42,600 ESOPs and exercise amount aggregating to INR 1,11,11,080/-.
        (ii) Grant of ESOPs to non-resident employee of Aurobindo Pharma Limited, after issue of Press Note 3 of 8 November 2011, which were exercised and shares issued against them after 8 November 2011 but before 11 June 2015, totalling to 1,18,700 ESOPs and the exercise amount aggregating to INR 1,08,72,920/-

        Pharma

        2.19

        2

        5

        Sterling Commerce Solutions India Private Limited

        Approval has been sought by Sterling Commerce for acting as an Investing company for
        a) Curan software international Private Limited, Emptoris Technologies India Private Limited, Kenexa technologies Private Limited and Rational Software Corporation (India) Private Limited, which are currently owned by Overseas companies of IBM and currently dormant companies.
        b) From time to time act as an investing company for companies undertaking software development, technologies services or those which have become dormant pursuant to transfer of their business to IBM India.

        Investing 

        Nil

         

        The following one (01) proposal has been recommended for approval of Cabinet Committee on Economic Affairs (CCEA) under para 5.2.2 of the extant FDI Policy, 2015: 

        S. No.

        Item No

        Name of the applicant

        Gist of the proposal

        Sector

        FDI (Rs.  crore)

        1

        11

        M/s Holcim (India) Private Limited

        Approval sought by M/s Ambuja Cements Ltd., for acquisition of 24% shares in its holding company, Holcim (India) Pvt Ltd from the latter’s holding company M/s Holderind Investments Ltd (NR) and subsequent reverse merger through a share swap.

        Investing company

        (3400) approx.

         

        The following three (03) proposals have been deferred: 

        S. No.

        Item No

        Name of the applicant

        Gist of the proposal

        Sector

        1

        7

        Mylan Laboratories Limited

        a. Post facto approval for receipt of USD 34,05,869 from Mylan Luxembourg 2 Sarl on 04.12.2013 which was brought in over and above the approved FDI of USD 96 crores in 2013
        b. Clarification that Clause 2(i) of FIPB approval dated May 8, 2015 and Clause 2(I) of FIPB approval dated November 12, 2015 do not apply to the NLEM drugs manufactured by MLL.

        Pharma

        2

        8

        Vodafone India Limited

        Approval for the proposed acquisition of the entire share capital (100%) of M/s You Broadband India Limited.

        Telecom

        3

        12

        M/s Reckitt Benckiser (India) Limited.

        M/s Reckitt Benckiser (India) Limited, a WOS of the Reckitt group, proposes to acquire 25.028% paid up share capital of M/s Reckitt Benckiser Healthcare India Limited from its current foreign investor viz. M/s Reckitt Benckiser (Singapore) Pte. Ltd., Singapore

        Pharma

         

        The following seven (07) proposals have been rejected: 

        S. No.

        Item No

        Name of the applicant

        Gist of the proposal

        Sector

        1

        2

        Rizobactor Argentina, S.A

        Approval for making investment in India through creating its wholly owned subsidiary for the purpose of dealing in liquid inoculants and bio-fertilizers and adjuvants.

        Pharma

        2

        4

        M/s Indian Energy Exchange Limited

        Approval has been sought by M/s Indian Energy Exchange Limited to remove compounding condition which was imposed vide letter dated 29.05.2015.

        Power exchange

        3

        6

        M/s Veritas (India) Limited

        M/s Veritas (India) Limited has sought post facto approval for the issuance of 4,00,000 warrants convertible into equity shares for an aggregate consideration of INR 50 crore.

        Trade and distribution

        4

        9

        M/s BMJ Group India Private Limited

        Approval has been sought  to expand the scope of its business activities by engaging in the business of publication of certain scientific/specialty healthcare journals/periodical in line with the original edition of foreign publication being published by its holding company i.e. M/s BMJ Publishing Group Limited, United Kingdom.

        Publishing

        5

        10

        M/s CevaSanteAnimale

        Approval for investment by in M/s Polchem Hygiene Laboratories Private Limited by way of purchase of shares of the investee company from existing resident shareholders in 2 tranches

        Pharma

        6

        13

        M/s Sharekhan limited

        Acquisition of up to 100% of the share capital of Sharekhan Limited other than the shares held in Sharekhan Limited by Human Value Developers Private Limited by BNP Paribas SA France and/or one or more of BNP’s French subsidiaries, andacquisition of 100% capital of Human Value Developers Private Limited by BNP and/ or one or more of BNP’s French subsidiaries.

        NBFC

        7

        14

        M/s Exzatech Solutions Ltd

        Approval has been sought to incorporate a wholly owned subsidiary in India whose main operations would be in the field of IT Sector. As the applicant company is situated in Bangladesh and is going to incorporate a wholly owned subsidiary company in India, it comes under approval route

        IT/ITES

         

         The following one (01) proposal does not lie before FIPB: 

        S. No

        Item No

        Name of the applicant

        Gist of the proposal

        Sector

        1

        1

        M/s WISKA India Private Limited

        Approval has been sought by M/s WISKA India Private Limited (wholly owned subsidiary of WISKA Hoppmann and Mulsow GmbH), for conversion of import payables of INR 1.35 crore into 13,50,000 equity shares of ₹ 10/- each. The applicant purchases goods from WISKA Hoppmann and Mulsow GmbH and resells them in Indian market. Now the company wants to convert part of its old import payables into equity share capital.

        Wholesale trading

         

        *****

        DSM/ka 

        Foreign Direct Investment approvals and referrals: FIPB cleared ESOP and investing-company proposals and recommended a reverse-merger acquisition. Two FDI proposals were approved by FIPB: grant and exercise of ESOPs to non-resident employees of a pharmaceutical company, and approval for a company to act as an investing company for certain dormant or software-related subsidiaries. One proposal was recommended to CCEA for approval concerning an acquisition and reverse merger via share swap. Three proposals were deferred for further clarification and seven were rejected; one proposal was found not to lie before FIPB. Affected sectors include pharma, investing company transactions, telecom, power exchange, trade and distribution, publishing, NBFC, IT/ITES and wholesale trading.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Foreign Direct Investment approvals and referrals: FIPB cleared ESOP and investing-company proposals and recommended a reverse-merger acquisition.

                                Two FDI proposals were approved by FIPB: grant and exercise of ESOPs to non-resident employees of a pharmaceutical company, and approval for a company to act as an investing company for certain dormant or software-related subsidiaries. One proposal was recommended to CCEA for approval concerning an acquisition and reverse merger via share swap. Three proposals were deferred for further clarification and seven were rejected; one proposal was found not to lie before FIPB. Affected sectors include pharma, investing company transactions, telecom, power exchange, trade and distribution, publishing, NBFC, IT/ITES and wholesale trading.





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