Regulatory Roundup: January 2013
Published on Sat, Feb 02,2013 | 13:51, Updated at Sat, Feb 02 at 14:08Source : Moneycontrol.com
The year 2012 witnessed many transitions in the Indian economy. The second half of the year saw many reforms by way of announcements by the Government- foreign investment in retail, broadcasting and aviation, progressing the Companies Bill 2011, banking laws amendment bill, setting up the cabinet committee on investment, etc. With this backdrop, FII’s which has invested a net 12 billion USD in India till august 2012, brought in an additional 12.5 billion USD in the remaining four months. This shows positive sentiments towards the Indian economy. Also, the 16th annual global CEO survey done by PwC suggested that India is still on the radar for investment and is considered the 5th most favourable market for growth. The country continued to maintain a relatively competent growth path amidst wide-spread global slowdown.
The highlight of this month’s ‘Refresh’ is based on such similar and continued efforts on the part of the Government to improve liquidity in the market and achieve sustained growth. Measures to further promote infrastructure financing have been adopted through enhancing the external commercial borrowing (ECB) limit for non-banking financial company - infrastructure finance companies. Also, Indian companies in the hotel sector having the project size of INR 2.5 billion are now permitted to avail ECBs for repayment of outstanding rupee loans availed for meeting capex subject to certain conditions.
The Securities and Exchange Board of India (SEBI) has, in its board meeting in January, decided to introduce initiatives to develop the Indian capital market and provide liquidity in the domestic market. SEBI has also introduced new investment advisors regulations 2013.
In order to settle the dust on tax incentives extended to IT/ITeS companies in special economic zones, the central board of direct tax has issued certain positive clarifications, which would help boost activities in such zones.
Also, in this issue, Santosh G analyses the impact of the new type of company i.e., a one person company as introduced by the new Companies Bill, 2013.