Update: The Reserve Bank of India (RBI) on Friday (May 22, 2020) raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. The limit will be restored to 25% after the deadline unless the RBI decides otherwise. As a prudential measure, aimed at better risk management…
RBI on Thursday (12.03.2020) announced that it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market in multiple tranches. The first tranch would be offered on March 16, 2020, for swap amount USD 2 Billion “On emerging Financial markets worldwide are facing intense selling pressures on…
A convertible note is a form of short-term debt instrument issued by a start-up company that converts into equity, typically in conjunction with a future financing round. It means the investor would be loaning money to a startup and normally would receive equity in the company in lieu of a return in the form of…
FVCI stands acronym for Foreign Venture Capital Investor’ (FVCI). FVCIs are investors incorporated and established outside India and registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. They can make an investment in India in terms of schedule 7 of FEMA…
(According to the new rules employer need not deduct tax at source if salary income including the value of perquisites is not taxable after giving effect to the exemptions, deductions, and relief as applicable). Section 192 of the Income Tax Act, of 1961 deals with tax deducted at source (TDS) on salary. According to this…
This article distinguishes amongst foreign investment, Foreign Direct Investment, Foreign Portfolio investments, Qualified Foreign Investor (QFI), Foreign Institutional Investor (FII), etc. Foreign Investment: Any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of a Limited Liability Partnership (LLP) is known…
The four anchor banks PNB, Union Bank, Canara Bank, and Indian Bank approved mergers of the other 6 PSBs and issued share-swap ratios for the proposed mergers. The details of share-swapping are as under.PNB: 1150 share of PNB for every 1000 shares of OBC 121 shares of PNB for every 1000 shares of United Bank…
The Yes Bank Ltd. was placed under an order of moratorium on March 5, 2020 which will be effective up to April 3, 2020.In this regard, RBI published a draft scheme of reconstruction of the Yes Bank Ltd.in public domain inviting suggestions and comments from the public as well as all the stake holders of…
‘Riksbank’ a joint-stock bank established in Sweden in the year 1668 is recognized as the world’s first central bank. The bank was commissioned to lend funds to the government and to act as a clearinghouse for commerce. But in the year 1897 the ‘Riksbank’ deserted commercial lending and it was granted a monopoly for issuing…
[This article elucidates the FEMA rules for the transfer of sale proceeds of immovable properties abroad and the documents required for the same.] Section 6(5) in the Foreign Exchange Management Act, 1999 provides that “A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in…