| Trustman & Co.

| Trustman & Co.: The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi ji, has given its nod to the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and Women entrepreneurs. The Scheme is intended to facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur. The …

overseas subsidiaries of Indian companies

In reference to the circular DBOD.IBD.BC.No.96/23.37.001/2006-07 dated May 10, 2007 permitting banks in India to extend funded and/or non-funded credit facilities to step-down subsidiaries of the overseas subsidiaries of Indian companies that may not be wholly owned, subject to certain conditions. RBI has revived the above instructions and modified the same which are mentioned below.

Modified norms

·        Banks may extend funded and/or non-funded credit facilities to the step-down subsidiaries of Indian companies including to those beyond the first level, to finance the projects undertaken abroad.

·        The immediate overseas subsidiary of the Indian company must be directly controlled by the Indian parent company through any of the modes of control recognised under the Indian Accounting Standards. As per the Indian Accounting Standards, control has been defined as (a) the ownership, directly or indirectly, through subsidiary(ies), of more than one-half of the voting power of an enterprise; or (b) control of the composition of the board of directors in the case of a company or of the composition of the corresponding governing body in case of any other enterprise so as to obtain economic benefits from its activities. In addition, the Indian parent company must directly hold a minimum 51% of its shareholding.

·        All the step-down subsidiaries, including the intermediate ones, must be wholly owned subsidiary of the immediate parent company or its entire shares shall be jointly held by the immediate parent company and the Indian parent company and / or its wholly owned subsidiary. The immediate parent should, wholly or jointly with Indian parent company and / or its wholly owned subsidiary, have control over the step-down subsidiary.

·        Banks shall make additional provision of 2% (in addition to country risk provision that is applicable to all overseas exposures) against standard assets representing all exposures to the step-down subsidiaries, to cover the additional risk arising from complexity in the structure, location of different intermediary entities in different jurisdictions exposing the Indian company, and hence the bank, to greater political and regulatory risk.

Germany India Bilateral Agreement

Germany India Bilateral Agreement

Salient Features of Draft Regulatory Reform Bill, 2013

Salient Features of Draft Regulatory Reform Bill, 2013



Salient Features of Draft Regulatory Reform Bill, 2013
(i) General:
a. The objective of the proposed regulatory Bill is orderly development of infrastructure
services, enable competition and protect consumer interest in securing access to affordable and quality infrastructure.
b. The Draft Bill is guided by the three general principles of separation of power, democratic accountability, and the federal principle. Accordingly, the rule-making and enforcement functions have been separated from judicial functions, which have been vested in Appellate Tribunals. To secure democratic accountability, the regulator has been made responsible to the legislature and to the people at large. The federal principle has also been followed through distribution of subjects of economic regulation between union and state competencies.
c. The Draft Bill includes an overarching institutional framework for regulatory commissions and appellate tribunals, their role and functions, legislative, financial and judicial accountability and their interface with the market and the people.
(ii) Constitution:
Independence and autonomy are key considerations for constitution of regulatory commissions and appellate tribunals. In the Draft Bill, selection, appointment and removal of chairperson and members is insulated against any perceived interference or manipulation that may influence the outcome. The Draft Bill lays down a fair selection process where it proposes that the Chairperson and members of the regulatory commissions may be appointed by the President of India on the recommendation of the Prime minister who should choose from out of a panel of two or three names empanelled by a High Powered Selection Committee and approved by the Minister concerned.
(iii) Tariff Regulatory Commission:
The Government may also constitute tariff regulatory commissions for determination of tariffs in the provision of goods and services in public utility industries where competition is either restricted or the prices of such goods or services are determined by the government or an entity owned or controlled by the government.
(iv) Tenure and other conditions:
Tenure of members is proposed to be fixed at four years. It is proposed that qualifications and experience of members should be specified by law with a view to ensure a multi-disciplinary composition of the regulatory commissions and appellate tribunals. Further, at least one member may also be drawn from other than public sector background to enrich the functioning
of the regulatory bodies

Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan

A Snapshot of Hon’ble Prime Minister Shri Narendra Modi’s  visit to Central Asian Countries— Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan (6^th-13^th July, 2015)

Hon’ble Prime Minister Shri Narendra Modi during his visit to Central Asian Countries- Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan from (6th -13th July) aimed at enhancing strategic, economic and energy ties along with cooperation in the field of trade and investments. Shri Narendra Modi is the first Indian PM to visit the five Central Asian nations in one trip. During the visit India signed several MOUs and Agreements with each of these Central Asian countries.Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan

Shri Pankaj Mohindroo, National President, India Cellular Association

Seeking Suggestions  for “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS”

Dear All,

The Government has recently introduced the “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS”BILL, 2015 and is seeking inputs from all concerns.

For the benefit of INBA members the draft bill’s link is enclosed herewith. We request you to please provide your suggestions on how to improve the said Bill. The standing committee has clearly requested that suggestions should be against each clause; therefore kindly provide suggestions accordingly in the format enclosed:

INBA’s recommendations to “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS” BILL, 2015.

S. No.

Section

Particulars of Section

Effect and impact of the sections

Recommendations to the proposed Bill

Download Format

All are requested to please submit their written responses in the above format latest by: 17th June, 2015. Please note INBA needs to compile your suggestions before sending them to the committee which has to be done latest by 20th June, 2015.

Your submission will be appreciated and acknowledged by the committee of Parliament.

For all submission related queries, please contact at:

Archana Aggarwal; Email: archana_aggarwal@indianbarassociation.org;

Contact:+919971532995/918285710651