Many non-banking finance companies (NBFCs) have made investment in overseas ventures without the regulatory clearance by Reserve Bank of India (RBI). A Statement with the details of the NBFCs, registered with Securities and Exchange Board of India (SEBI), which have made investments in overseas Joint Ventures/ Wholly Owned Subsidiaries without approval of the Reserve Bank of India (RBI) during the last three years and action taken is attached as Annex -I. Similar Statement in respect of other NBFCs is at Annex-II.

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the A.P. (DIR Series) Circular No. 44 dated March 29, 2010 in terms of which Indian companies were allowed to buyback their Foreign Currency Convertible Bonds (FCCBs) under the approval route, up to June 30, 2010, subject to the issuers complying with all the terms and conditions of buyback/ prepayment of FCCBs.

Attention of Authorised Dealer Category – I banks is invited to paragraph 5 (i) of A.P. (DIR Series) Circular No.24 dated December 30, 2009 wherein it was stipulated that the Annual Activity Certificates (AACs) as at the end of March 31, shall be submitted by the Branch Office / Liaison Office (BO/ LO), on or before April 30 every year, to the designated AD Category-I bank and a copy to the Directorate General of Income Tax (International Taxation), New Delhi.

The pricing in regard to issue and transfer of shares to non-residents were governed by the CCI guidelines. Theses have been replaced with the discounted cash flow method which is based on the future earnings. However, RBI has made a distinction in pricing with respect to issue of shares on preferential basis as compared to normal issue as the same would be covered by the RBI guidelines to be prescribed.

In terms of Section 4(1) of the payment and settlements Systems Act, 2007, no person other than the Reserve Bank shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under the provisions of the said Act. In terms of explanation of Section 2(1)(i) of the Act, a payment system includes money transfer operations.

The Enforcement Directorate is set to file cases against Rajasthan Royals and the Board of Control for Cricket in India (BCCI) after its investigations found violations of foreign exchange rules, an official familiar with the development said.

Keeping in view the special funding needs of the infrastructure sector, Reserve Bank of India (“RBI”) has issued a Circular (A.P. (DIR Series) Circular No. 4 dated 22 July, 2010) ‘ to liberalise the above refinancing restriction under a Take-out Finance Scheme. The said scheme is applicable to Indian corporates in the sea­port and airport, roads including bridges and power sectors (eligible borrowers).

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on July 12, 2010, Government has approved 18 Proposals of Foreign Direct Investment amounting to Rs. 2245.32 Crore approximately.

Foreign direct investment in new form of business, limited liability partnerships (LLPs), could be allowed without a cap, a highly placed source said.”The officials have reached a consensus for 100 per cent FDI in LLPs,” he said. Officials in the ministries of industry, finance and corporate affairs have been in regular consultations on the issue of allowing foreign direct investment (FDI) since the LLP form of business was notified in 2009.

The Cabinet is likely to consider the changes in the new Foreign Trade Bill to give a leg-up to exports. The Foreign Trade (Development and Regulation) Amendment Bill, which was introduced in the Rajya Sabha in 2009, was later referred to the standing committee of commerce.