The board that approves overseas investments has decided to allow the issue of warrants without board''s approval, which means saving of 40 to 60 days on deals in India. This will help to fast track the mergers and ease red tape. The government is looking to easing the process of selling stake and raising funds through the issue of warrants and partly paid shares. The finance ministry has decided that issue of warrants and partly paid up shares can go through the automatic route without the FIPB approval, which will help the foreign firms to save time in concluding their equity deals.
Besides this, the finance ministry has also plugged a major inconsistency in the policy. The Companies Act permits raising FDI through partly paid shares while the Foreign Exchange Management Act does not allow it. However, with an amendment in FEMA, now the RBI will also address this glitch.
Besides this, the finance ministry has also plugged a major inconsistency in the policy. The Companies Act permits raising FDI through partly paid shares while the Foreign Exchange Management Act does not allow it. However, with an amendment in FEMA, now the RBI will also address this glitch.
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