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FIIs can invest up to 34% under PIS in CONCOR

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The Reserve Bank of India has today notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 34 per cent of the paid up capital of Container Corporation of India Ltd. under the Portfolio Investment Scheme (PIS).

The Reserve Bank has stated that the company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.

RBI further advised that the foreign shareholding by FIIs/RFPIs in Container Corporation of India Ltd. has gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.

black money in stock market

The Reserve Bank has notified this under FEMA 1999

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ED notice to NDTV for ‘FEMA violation’, not legally tenable says channel

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New Delhi: The Enforcement Directorate (ED) has issued a show-cause notice to private broadcaster NDTV about alleged violations of Foreign Exchange Management Act (FEMA) as the latter said it was not “legally tenable”.

The company, in a filing to the Bombay Stock Exchange, said it had on Thursday (November 19) received a show-cause notice in the name of Executive Co-Chairpersons Prannoy Roy and Radhika Roy as well as Executive Vice-Chairperson KVL Narayan Rao and NDTV Studios Ltd from the Directorate of Enforcement as to why adjudication proceedings should not be held for alleged contraventions of provisions of FEMA.

NDTV said it had been advised that the allegations of the contraventions of provisions of FEMA in the show cause notice were not legally tenable and it will reply to the same in due course of time.

NDTV had filed the notice during market hours, resulting in a sharp fall in its stock price by 7 percent. The stock which opened at Rs 87.35 on Friday morning fell sharply to Rs 82.40 before recovering to Rs 85.75, a decline of 2.56 per cent.

(IANS)

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Cabinet nod for merging FDI, FII limits

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New Delhi: The cabinet committee on economic affairs on Thursday cleared a policy for determining composite foreign investment limits by including funds flowing through foreign direct investment (FDI), foreign institutional investment (FII) and other routes.

The committee approved “the introduction of composite caps for the simplication of foreign direct investment”, Finance Minister Arun Jaitley told reporters after the cabinet meeting here.   Credits: https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB1qFQoTCJHy2dCo38YCFVFKjgodgHAPkQ&url=http%3A%2F%2Fwww.edukart.com%2Fblog%2Ffdi-understanding-the-concept%2F&ei=pHanVZGQGtGUuQSA4b2ICQ&bvm=bv.97949915,d.c2E&psig=AFQjCNEbPVZtDB4YhY1T-LUbNwMtMCtjcQ&ust=1437124178381483

The decision of merging the limits of foreign direct and portfolio investments into a composite cap is essentially a move towards giving companies more flexibility for deciding on the desired mix of foreign investment.

It will also bring in transparency and clarity on the country’s foreign investment policy.

Opposition parties, including the Congress and the Left, have been against the proposal on the ground that portfolio investment is in nature very short-term “hot money” that can leave the country at any time, creating crises of capital outflow.

In this connection, the government said on Tuesday that FDI in the country has seen a 48 percent growth since the launch of the ‘Make in India’ initiative in September last year.

“The FDI growth has been significant after the launch of ‘Make in India’ initiative in September 2014, with 48 percent increase in FDI equity inflows during October 2014 to April 2015 over the corresponding period last year,” a commerce ministry statement said.

In 2014-15, the country witnessed unprecedented growth of 717 percent or $40.92 billion in investments by foreign institutional investors (FIIs), it said.

(IANS)

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Lalitgate: ED seeks info from Singapore, Mauritius

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By NewsGram Staff Writer

The alleged Rs 125 crore money-laundering case related to allotment of broadcasting rights for IPL matches in 2009 against Lalit Modi has been lying in the docks for almost 6 years now.

The case is beginning to show some headway with the Enforcement Directorate (ED) asking for assistance from Singapore and Mauritius to tighten its case against Lalit Modi.

The process of issuing a letter of request under the Prevention of Money Laundering Act (PMLA) to countries, including Singapore and Mauritius, was started by the ED on Monday.

The letter asks the countries to provide account details of companies and individuals suspected to be involved in money transactions.

“After examining those details, the ED may ask for issuance of a red-corner notice against Modi or can ask for his extradition,” said a senior ED officer.

Under rules governing letter of intent formalities with Singapore and Mauritius, the countries will have to provide the requested details in a time-bound manner.

The ED has earlier issued notices to Modi under the Foreign Exchange Management Act (FEMA), which is governed by civil laws and usually ends with a monetary penalty.

But PMLA is governed by criminal laws and allows for the accused to be arrested.

The money laundering case is related to a complaint filed by former president of the Board of Control for Cricket in India (BCCI) N Srinivasan against Modi in Chennai in 2010.

Modi had been charged for misappropriation of Rs 425 crore while allotting media broadcasting rights of IPL in 2009. The allegations said Modi got Rs 125 crore from the deal.

In 2009, BCCI had awarded IPL media rights to World Sports Group (WSG) initially for 10 years.

Later, the rights were reissued to Multi-Screen Media (MSM), which was made to pay Rs 425 crore to WSG for relinquishing the rights.

“There was no agreement between the BCCI and WSG and WSG had no rights to relinquish”, officials told TOI.

The Lalit Modi controversy has cast a dubious light on external affairs minister Sushma Swaraj and Rajasthan chief minister Vasundhara Raje, with the opposition alleging wrongdoing and BJP stonewalling the allegations.