• DIPP to address issues on banking & prohibitive sectors
• Stamp duty waiver likely for conversion into LLPs
• SEBI may ask small cos to pay a lumpsum fee for listing
• SPV for monitoring e-governance projects: MCA
• FDI proposals worth Rs 541cr get govt nod
• MCA calls to bar Loop Tele
• According to sources, govt plans to bring out yet another clarification to exclude banks from the purview of its revised foreign investment norms, as it looks to prevent a clutch of Indian private banks from being categorised as foreign-owned. The status of investments made prior to the introduction of the new norms via Press Notes 2, 3 and 4 could also be subjected to further clarification. RBI and finance ministry are learnt to have asked DIPP to review its new foreign investment norms as they could improperly categorise 7 leading private banks as foreign-owned. Instead of reversing the new guidelines, as demanded by the finance ministry, DIPP would only seek to address and clarify a few key issues raised by the finance ministry and RBI. These issues include treatment of FDI in the banking sector, shielding FDI-prohibitive sectors such as multibrand retail, agriculture and gambling from foreign capital and treatment of investments made prior to the new FDI calculation norms. (ET)
• According to sources, govt may exempt partnership firms and limited companies from paying stamp duty while converting into limited liability partnerships (LLPs). Govt is likely to amend the Income Tax Act later this year to provide a tax regime for LLPs, which are being incorporated from the beginning of this month. The idea is to adopt a provision similar to Section 394 of the Companies Act, which allows high courts to waive off stamp duty while approving amalgamations and restructuring of companies involving transfer of assets. (ET)
• SEBI is considering a proposal, whereby co.s below a certain threshold of paid-up capital will be asked to make a one-time lumpsum payment to the stock exchanges, on which they are listed. The bourses will keep this money in bank fixed deposits, and the interest accruing on it would be used towards payment of listing fees. With this, SEBI expects to deal with companies defaulting on payment of listing fees as in the past, many co.s have been delisted by the stock exchanges for not paying listing fees. (ET)
• Ministry of corporate affairs is planning to set up a special purpose vehicle (SPV) to monitor the e-governance projects undertaken by the ministry such as the MCA-21, limited liability partnership (LLP) and official liquidators. According to the ministry, the SPV will play the role of a supervisor over looking all the e-governance modes that have been set up. The ministry has engaged a consultant who is currently working on the structure, sources of funds and the scope of the work of the SPV. (FE)
• FIPB has cleared 22 FDI proposals, including those of Yamaha and Nokia worth Rs 541.25 crore. Nokia plans to set up at single-brand retail joint venture with HCL Infosystems to sell handsets and accessories with an investment Rs 25 lakh. Yamaha’s proposal was to transfer its business operations to a new company in India, India Yamaha Motor Pvt Ltd. Mumbai-based broadband company Tikona Digital Networks will attract the highest FDI of Rs 237.26 crore, while Kolkata-based Electrosteel Castings, will receive Rs 157.47 crore of FDI. However, Al Khaleej’s plans to set up a sugar refinery have been rejected and Vijay Mallya promoted United Breweries’ request for a post-facto approval for issue of warrants to overseas investors has been deferred. (ET)
• Ministry of corporate affairs (MCA) has asked the communications ministry to reconsider granting telecom licence to Essar Group-owned Loop Telecom as its investigations into the ownership and shareholding pattern of Loop Telecom have revealed that Loop Telecom is owned by a company named Santa Trading Pvt Ltd (STPL), which in turn owns BPL Communication and BPL Mobile Communications. The Essar Group does not have a direct stake in STPL, but holds 9.99% indirectly and there are significant links and benefits arising to STPL from the financial transactions, direct and indirect, with the Essar Group. MCA has added that while Essar Group is not an equity holder in STPL, it has invested Rs 1,592 crore in the unsecured, non-convertible debentures of STPL. DoT may now examine its policy and regulations for eligibility for grant of letter of intent to Loop Telecom for grant of UAS licence. (ET)
