Declaration Of Beneficial Ownership In Foreign Direct Investment.To accelerate inflow of FDI FDI See: Foreign direct investment in India and further simplify the techniques employed in calculation of FDI, Government of India The Government of India (Hindi: भारत सरकार [3]Bhārat Sarkār), officially referred to as the Union Government, and commonly as Central Government (GOI GOI Government Of India GOI Government Of Indonesia GOI Government of Israel GOI Get Over It (chat) GOI Government of Iraq GOI Gross Operating Income GOI Gene of Interest GOI Gate Oxide Integrity GOI Germanium-On-Insulator ) is likely to propose a Bill governing indirect shareholdings of foreign investors in Indian companies This is a list of major companies based in India. Please note that the list is highly incomplete and does not have every company of all sizes. More information about the companies can be found in the links to the company articles. A
The issue of calculating such indirect shareholding came to the fore recently when Vodafone's USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 11.1 billion buy out of Hutchison Telecom International's direct majority holding in Hutchison-Essar was examined by the FIPB FIPB Foreign Investment Promotion Board (India) to determine whether the multi layered shareholding structure in Hutchison-Essar breached the FDI ceiling in the telecom sector. The transaction was subsequently cleared by the FIPB, after prolonged deliberation and seeking the opinion of the Law Ministry and the FIPB called for a review of the existing norms to bring about clarity in computation of indirect shareholding of foreign investors. The proposed Bill is expected to consolidate and incorporate relevant provisions of the Foreign Exchange Management Act, 1999 (FEMA FEMA, n.pr See Federal Emergency Management Agency. ), Companies Act, 1956 and the FDI policy, various Press Notes issued by the Ministry of Commerce and Industry and consider the legal regulations/ structures of other countries concerning indirect shareholding. Further, it is anticipated that complex transactions would be dealt with in the Bill, thus restraining companies from taking advantage of loopholes in the present legislation and circumventing notified sectoral caps. In continuation of the ongoing amendments being implemented in the FDI policy, GOI is examining a proposal that seeks to make it obligatory for foreign investors to file declarations as regards their 'beneficial ownership' in Indian ventures. In the event the proposal is implemented, in sectors where FDI is restricted, the overseas investors would be required to declare to the government their indirect stake holding, for which funds have been made available through loans or other means. With the introduction of such a provision in the FDI policy, every foreign company investing in India through an entity in another country would be required to give a declaration in this respect. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Mr Shardul Thacker Mulla & Mulla & Craigie Blunt & Caroe Mulla House 51, Mahatma mahatma (məhăt`mə, –hät`–) [Sanskrit,=great-souled], honorific title used in India among Hindus for a person of superior holiness. Mohandas Gandhi is the best-known figure to whom the title was applied. Gandhi Road Mumbai 400-001 INDIA E-mail: shardul.thacker@mullaandmulla.com Click Here for related articles (c) Mondaq Ltd, 2008 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
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