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Hi Folks

“Strength does not come from physical capacity. It comes from an indomitable will.” 2 of our national leaders epitomize this adage – M K Gandhi and Lal Bahadur Shastri, both of whom share their birthdays on 2nd October. While Gandhiji’s frail figure but iron will galvanized the entire nation during our freedom struggle, Shastriji’s rather puny size but firm and self –
effacing manner ushered in the much-needed ‘green revolution’ in the ’60s. The courage of conviction was their strength, not their physical capability. Added to this was their integrity and complete disdain for amassing personal wealth.
It is not clear whether the man of the moment, Mr. Prime Minister, Manmohan Singh compares with these 2 giants in terms of size or will or both or none. Surely he seems to have unshackled himself and has taken the bull by its horns, by announcing the much-awaited changes in the Foreign Direct Investment Policy. Amidst the brouhaha of anticipated foreign investment uplifting our sagging economy, let us not be brow-beaten by the biggies of the business. They need us as much as we need them. It is a 2-way game that we need to play to our advantage, of course following the ‘healthy rules of the game’.
Lexspeak carries all the Press Notes related to FDI and other important changes announced by RBI this fortnight.
To read the earlier issues and articles Click Here

Sincerely
Lex Valorem Team

In order to convert a Co-operative Society into a Producer Company, No Objection Certificate (NOC) is required from the Local Cooperative Department and the Society must have multi – State activities.
Foreign NGOs / Not-for-profit organizations / Government bodies & departments proposing to set up Project Office in India require prior approval of Reserve Bank of India under the Government Route. It may be noted that for other non-residents setting up of a Project Office is under the General Permission Route.
The format of annexure ‘A’ contained in E-form 23AC and 23ACA (Annual filing) has been revised.
Foreign NGOs / Not-for-profit organizations / Government bodies & departments proposing to set up Project Office in India require prior approval of Reserve Bank of India under the Government Route. It may be noted that for other non-residents setting up of a Project Office is under the General Permission Route.
Shares issued to non-resident subscribers to the Memorandum of Association can be at face value subject to eligibility to invest under FDI policy. In effect RBI would accept face value as the fair market value of subscription shares.
With immediate effect, as a security measure, RBI requires all Liaison/ Project/ Branch Offices established by foreign entities in India, to furnish certain information within 5 working days after becoming functional and also on an annual basis to the concerned DGP (Director General of Police) of the State where they are registered.

The most awaited liberalization in the FDI Policy has been announced which has left the political opponents crying foul and the Corporates excited and exuberant. What it means for the common man in India will be unfolded in the months to come. Of course the foreign investors, businesses and media are hailing the Government of India as ‘Bold & Beautiful’ !
  • 100% FDI in Single Brand Retail Trading Permitted.
  • 51% FDI in Multi Brand Retail Trading Allowed.
  • 49% FDI in Civil Aviation Sector Permitted.
  • FDI in Broadcasting Services Relaxed.
  • 49% FDI in Power Exchanges Allowed.
Read the article to know about various terms and conditions under each sector.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

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