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Overseas Direct Investment (ODI) made on or before 14th Aug, 2013 will continue to attract investment limit at 400% of the net worth of the Indian party under automatic route. Thus investment made before the said date does not require any prior approval. |
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As a measure of liberalization by RBI, a non-resident (NR) is permitted to acquire shares of a listed Indian company on a stock exchange through a registered broker under FDI scheme, provided that the NR acquires the shares as per the SEBI regulations, continues to hold control in terms of the regulations and subject to a few other conditions. |
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In order to provide operational flexibility, RBI has permitted banks to issue bank guarantee in favour of non-resident acquiring shares or convertible debentures of an Indian company through open offers without any prior approval of the RBI, provided such guarantee is backed by a counter guarantee of an international bank. |
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Issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under approval route provided the Indian party indirectly holds 51% or more stake in the overseas subsidy for which such guarantee is issued. Earlier the condition was �directly or indirectly�. |
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RBI has warned banks launching high risk Innovative Housing Loan Products alongwith builders/ developers under the 80:25, 75:25 schemes. Banks have been advised to link the disbursal of loan to stage wise construction of housing projects and not to disburse upfront in case of incomplete/ under-construction/ green-field projects. |
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Bluetooth wireless headsets for mobile phones/cell phones are classified under the custom tariff heading 85.17 �other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network and not 85.18 �headphones and earphones, whether or not combined with a microphone.� |
Consequently basic customs duty payable on bluetooth wireless headsets is 0% and not 10%. |
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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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