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Government Approves Seven (7) Proposals of Foreign Direct Investment (FDI)



Government Approves Seven (7) Proposals of Foreign Direct Investment (FDI) 



            Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 238th Meeting held on 3rd August 2016, the Central Government has approved seven (07) FDI proposals as per details enclosed.


S. No
Item No
Name of the applicant
Gist of the proposal
Sector
FDI (Rs.  crore)
1
2
M/s IMCD India Pvt. Ltd
Post facto approval  for issuing 42,13,814 equity shares of Rs. 10 fully paid up at a premium of Rs. 140 per share to IMCD Finance BV as consideration for transfer of IMCD Group BVs Indian branch into IMCD India pursuant to a court approved scheme of demerger. The fair value of the share has been determined to be Rs. 14.04 per share.
Wholesale Trading
Nil
2
3
M/s Fincare Business Services Private Limited
Approval has been sought for amendment in the Clause 2, 5 and 6 of the approval letter dated 08.05.2015
Investing company/ Small Finance Bank
Nil
3
6
Haymarket SAC Publishing (India) Private Limited
Haymarket SAC Publishing (India) Private Limited has sought an approval for the take over the publication of the specialty magazine "Print Week" from Haymarket Media (India) Private Limited, its sister concern
Publication
Nil
4
7
M/s Laurus Labs Private Limited
Approval for downstream investment into Sriam Labs Private Limited (‘Sriam Labs’) by purchase of 10,368,455 equity shares of Rs. 10 each representing 73% of fully paid-up equity share capital of Sriam Labs from the existing shareholders for a total consideration of an amount of Rs. 22.99 crores, thereby Sriam Labs will become 100% wholly owned subsidiary of Laurus Labs
Pharma
22.99
5
11
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
Nil (outflow of Rs 812 crore approx.)
6
13
Samara Capital Partners Fund II Limited
Approval has been sought for  the purchase of 100% of the shareholding of Adcock Ingram Healthcare Private Limited from Adcock Ingram Healthcare (Pty) Ltd and Adcock Ingram International (Pty) Ltd
Pharma
Nil
7
16
M/s Tikona Digital Networks Pvt Ltd
Approval has been sought for the issuance of CCDs thereby increasing foreign equity to 76.73%
Telecom
267.00


            The following seven (07) proposals have been deferred:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
5
M/s Celon Laboratories Limited
Approval has been sought for amendment in the following conditions in the FIPB approval letter dated August 3, 2015 and FIPB approval letter dated October 16, 2015.
Pharma
2
9
The Financial Times (India) Private Limited
(i)   Transfer of 99.99% of The Financial Times (India) Private Limited, to  Falstaff Singapore Pte Ltd, currently held by Pearson, Singapore for an aggregate consideration of SGD 1 (ii)  Transfer of 1 share of The Financial Times (India) Private Limited to Falstaff Singapore Pte Ltd, currently held by Pearson, Amsterdam (iii) Transfer of entire shareholding of Falstaff Singapore Pte Ltd to Nikkei Inc, currently held by Pearson, Amsterdam
Publishing
3
10
M/s HSBC Securities and Capital Markets (India) Pvt Ltd
Approval has been sought for: -
I. Merger of the FIPB approval letter no. FC-II 229(1994)/300(1994) dated 13.05.1994 (read along with 18 amendments) and approval letter no. FC-II 160(2005)/157(2005) dated 21.06.2005.
II. Incorporating a Wholly Owned Subsidiary which will act as a trustee company to HSBC Mutual Fund.
III. HSBC InvestDirect Financial Services(India) Limited[WoS of HSBC Invest Direct (India) Ltd] to engage into additional activities
Financial Services
4
14
 Quintillion Business Media Private Limited
Approval has been sought for the issuance of equity shares to BLOOMBERG L.P. The investee company is proposed to be engaged inter alia in the uplinking and broadcasting of a business news television channel and operating related digital content platform in India.
Up-linking of Non-News
5
15
M/s Morgan Stanley India Primary Dealer Private Ltd
 Approval for increasing equity participation from 75% to 100% by way of transfer of equity shares from M/s Morgan Stanley India Capital Private Limited (indirectly owned by Foreign Investor) to M/s Morgan Stanley Mauritius Company Limited, Mauritius by amending the earlier approval.
Financial Services
6
18
M/s Idea Cellular Infrastructure Services Limited
The applicant i.e. M/s Idea Cellular Infrastructure Services Limited (ICISL) is a wholly owned subsidiary of IDEA, which has become a foreign owned company with more that 50% foreign investment. Accordingly, ICISL is also deemed to have foreign investment in excess of 50% as a mirror image of its parent company. The proposal is to take on record the increase of foreign investment in ICISL beyond 50% and allow foreign investment in ICISL up to 67.5%.
Telecom
7
19
M/s BT Global Communications (Mauritius) Limited
Approval to acquire remaining 26% equity and preference share capital of M/s BT Telecom India Private Limited (Investee Company) from M/s Jubilant Stock Holding Private Limited, which will result in increasing its shareholding in the investee company from 74% to 100%.
Telecom


The following five (05) proposals have been rejected:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
1
M/s EXFO Asia Pacific Pte. Limited
Approval for investment in a Limited Liability Partnership, for carrying out wholesale trading operations.
LLP
2
4
M/s Sanofi-Synthelabo (India) Pvt. Ltd.
Approval sought by a foreign owned Indian pharmaceutical company, for the merger of two other foreign owned Indian pharmaceutical companies into itself.
Pharma
3
8
M/s Baxter (India) Private Limited
 Approval has been sought for deletion of Pharma related conditions from the FIPB approval dated 10.09.2014. The said approval was about conversion of ECBs into equity shares and fresh FDI against issue of equity shares to a non-resident Group company.
Pharma
4
12
M/s Oxigen Services Pvt Ltd
Approval has been sought  for  removal of clause no. 4,5,7,10 & 11 of FIPB Approval No FC.10(2012)/168(2011), because the activity of the company is 100% under Automatic Route. Therefore the terms and conditions mentioned under aforesaid clauses are not applicable on the company.
Financial Services
5
17
M/s Crown Cement Manufacturing India Private Limited
Approval for foreign investment from M.I. Cement, Bangladesh. The company is offering a private placement of 1,55,10,000 shares of its common stock to  M.I. Cement, Bangladesh subject to FIPB approval
Manufac-turing



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The Union Finance Minister Shri Arun Jaitley reviews the Implementation of Insolvency and Bankruptcy Code (IBC) 2016; Calls for quick action to implement the IBC in a time bound manner. 

The Union Finance Minister Shri Arun Jaitley directed the Senior Officers of the Ministry of Finance and Corporate Affairs to take suitable necessary action for implementation of Insolvency and Bankruptcy Code (IBC) 2016 in a time bound manner. The Finance Minister said that an immediate action is required on the key requirements for implementation of the IBC including setting-up of Insolvency and Bankruptcy Board of India (IBBI), notifying Rules and Regulations relating to Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs) and Corporate Insolvency among others. The Finance Minister was speaking in a Meeting held here today in order to review the implementation of Insolvency and Bankruptcy Code 2016. The Meeting was attended by Secretary, Department of Economic Affairs (DEA), Shri Shaktikanta Das, Secretary, Department of Financial Services (DFS), Ms. Anjuly Chib Duggal, Secretary, Ministry of Corporate Affairs(MCA), Shri Tapan Ray, senior officers of the Ministry of Finance, RBI and Securities and Exchange Board of India (SEBI) among others. 

The Finance Minister Shri Jaitley asked the officials of the Ministry of Corporate Affairs to notify NCLT Benches to deal with Corporate Insolvency, take action for registration of IPs and IPAs among others. Shri Jaitley said the implementation in a time bound manner is very crucial in order achieve the desired goals of Insolvency and Bankruptcy Code 2016. 

Earlier, Secretary, Ministry of Corporate Affairs, Shri Tapan Ray made a presentation giving the road map for implementing the Insolvency and Bankruptcy Code. During his presentation, Shri Ray highlighted the various decisions and actions taken by the Ministry of Corporate Affairs in this regard so far. He assured that the implementation of the IBC 2016 will be done in a time bound manner. 

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Revenue Secretary reviews IT preparedness of the various stakeholders for smooth roll-out of Goods and Services Tax.

A meeting was held today under the Chairmanship of Revenue Secretary Dr Hasmukh Adhia to review the IT preparedness of the various stakeholders for smooth roll-out of Goods and Services Tax (GST). In the said meeting representatives of Reserve Bank of India (RBI), Principal CCA, Central Board of Excise & Customs (CBEC), Heads of Government Business and IT Heads of 29 Banks and Goods and Services Tax Network (GSTN) took part.

Realizing the criticality of IT preparedness of various stakeholders, the Department of Revenue has been regularly monitoring the progress of IT preparedness of various stakeholders. In the meeting, the status of preparation of software by the Banks, RBI, Principal CCA Office, CBEC and GSTN were discussed along with details of protocol of information interchange between the various stakeholders. All authorized banks were directed to ensure that their IT systems are in place for networking with RBI, GSTN and the accounting authorities of Central and State Government authorities, latest by 30th September, 2016.

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Auction for Sale (Re-issue) of Government Stock


Government of India have announced the Sale (re-issue) of (i) “7.68 per cent Government Stock 2023” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, (ii) “7.59 per cent Government Stock 2026” for a notified amount of Rs. 8,000 crore (nominal) through price based auction, (iii) “7.50 per cent Government Stock  2034” for a notified amount of Rs. 2,000 crore (nominal) through price based auction,  and (iv) “7.72 per cent Government Stock 2055” for a notified amount of Rs. 2,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on August 26, 2016 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on August 26, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.  

The result of the auctions will be announced on August 26, 2016 and payment by successful bidders will be August 29, 2016 (Monday).  

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.


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Finance Secretary (FS) inaugurates the Training Program on Government E-Marketplace (GeM) for Government Users; FS: Training will enable the Government Procurement Officers to make best use of new technologies to procure goods and services in a more transparent, accountable and efficient manner.

The one-day hands on training program for Procurement Officers of the Central Government Ministries/Departments was inaugurated here today by Shri Ashok Lavasa, Finance Secretary, Government of India. The training program has been jointly organized by DGS&D, National Institute of Financial Management (NIFM) and National e-Governance Division (NeGD).

Speaking on the occasion,Shri Ashok Lavasa complimented the DGS&D, NEGD and NIFM for organizing the training program on the use of Government e-Marketplace (GeM) for the Government users. Shri Lavasa highlighted that the very fact that GeM has been developed within a short span of 5 months owing to the collaborative efforts of DGS&D, NeGD, Finance Ministry and several other Government agencies indicates that collaboration between Government agencies can bring great results in short time. Shri Lavasa also stated that GeM will enable the Government buyers to make the best use of new technologies to procure goods and services in a more transparent, accountable and efficient manner and with the same ease and efficiency that is presently offered by e-commerce sites. He wanted that such training programme should be taken seriously and more and more officers should be trained including the State Governments.

The Finance Secretary requested the GeM team to make efforts to continuously improve the GeM portal and ensure that it remains free from manipulation and any unethical practices. Shri Lavasa also stated although it has been made mandatory on GeM to make payment to the vendors within 10 days of receipt of goods/services, efforts should be made to further reduce this time span as time is money and ultimately the cost of delayed payment is born by the Government. GeM has a potential to grow and will bring in a lot of credibility and comfort in procurement decision making within the Government.

The training session was attended by more than 60 procurement officers from about 20 Central Government organizations based in Delhi and is the First such Training Program to be followed by similar pan-India Training Sessions for all the Central Government Procurement Officers.

Smt Radha Chauhan CEO of NeGD (MeitY) in her address mentioned about the concept of GeM and how it has been developed. She emphasised the importance of training and wanted the officers attending the programme to provide valuable feedback so that the system could be further improved. She mentioned that the system is secure and robust. Shri Binoy Kumar, DG(S&D) in his address stated that GeM is a completely online and end-to-end integrated e-procurement portal for products and services that has been developed by DGS&D with technical support from NeGD. He stated that more such training programs/sessions are planned for both the Government buyers as well as sellers in the coming days.

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