NEWSFLASH INDIA ANNOUNCES POLICY FOR STRATEGIC PARTNERSHIPS IN THE DEFENCE SECTOR. 7 July 2017 Background
|
|
- Primrose Underwood
- 5 years ago
- Views:
Transcription
1 NEWSFLASH INDIA ANNOUNCES POLICY FOR STRATEGIC PARTNERSHIPS IN THE DEFENCE 7 July 2017 Background On 31 May 2017, the Ministry of Defence (MoD) notified Chapter VII of the Defence Procurement Procedure, 2016 (DPP 2016) on strategic partnership. Although defence manufacturing has been open to private sector participation for well over a decade, grievances have been aired in relation to the lack of a level playing field in comparison to defence public sector undertakings (DPSUs) and Ordnance Factory Boards (OFBs), which are favoured by the Government in respect of long-term purchase arrangements for major defence platforms and equipment such as aircrafts, submarines, helicopters and armoured vehicles. The strategic partnership construct is significant as it seeks to assuage the grievances of the private sector and envisages a partnership structure to enhance competition, increase efficiencies, facilitate faster absorption of technology, create a tiered industrial ecosystem and promote participation in global value chains including exports. In this article, some of the salient features of the strategic partnership model are examined. For this purpose, our analysis is divided into the following broad categories. Part A: In this section, we examine the process of shortlisting both domestic Strategic Partners (SPs) and potential foreign original equipment manufacturers (OEMs), avenues for tie-ups and structuring considerations including implications of foreign direct investment (FDI) regulations. Part B: In this section, we identify the principal business segments that will be served by the SP route and the manner in which this route will be expanded for broader ammunition procurement. This section will examine some of the technical, financial and other parameters. Shortlisting the OEMs PART A SHORTLISTING OF OEMS, FDI RESTRICTIONS AND STRUCTURING CONSIDERATIONS The MoD will shortlist OEMs entitled to participate in the strategic partnership model taking into account the quantum, range, depth and scope of technology to be transferred, the extent of indigenous content proposed, value addition to the proposed eco system of Indian vendors/manufacturers, measures to aid the SP in 1
2 integrating platforms, plans to train skilled manpower and extent of future R&D planned for India. Indian companies shortlisted to act as SPs are free to engage with any of the shortlisted OEMs to jointly finalise the techno-commercial offer to the MoD. Under the SP route, an Indian company is entitled to submit only one bid in collaboration with a single OEM. An exception to this rule has been provided for segments with diverse platforms (such as helicopters) where potential SPs may submit responses with more than one OEM to have the best technology solution. A minimum number of platforms (not exceeding 10-15% of the number of units being procured) are to be manufactured in the OEM s premises. It is unclear whether this requirement may be waived or modified in relation to any specific system. Potential Tie-ups with OEMs and FDI restrictions The SP route envisages a tie-up between shortlisted Indian SPs and foreign OEMs for technology transfer, indigenous capacity building and assistance in training skilled human resources and other support throughout the life-cycle of the platform. Such tie-ups could be in the form of joint ventures (JVs), equity partnerships, technology sharing, royalty or other arrangements between the companies concerned. The applicant SP must be an Indian public company (as understood under the Companies Act, 2013) owned and controlled by resident Indian citizens. This requires the management of such a company to be in Indian hands with majority representation on the Board of Directors. Furthermore, Chief Executive(s) of the SP must be resident Indians who are part of the Indian group owning and controlling the applicant. For FDI purposes, calculation of foreign investment in the applicant SP must include: (i) (ii) (iii) the paid-up equity share capital held by the OEM either by itself or through its subsidiaries or nominees; the paid-up equity share capital held by other foreign investors; and the foreign investment held by an OEM or other foreign investors in accordance with (i) and (ii) above in any Indian company or limited liability partnership which is a shareholder in the applicant SP. However, it has been clarified that for the calculation of foreign equity in the applicant SP, equity held by foreign portfolio investors (Category I and II only) and Indian mutual funds would be excluded. Changes in ownership structure or shareholding pattern of the SP require prior approval of the MoD. The ownership and control thresholds adopted under the SP model are consistent with the extant FDI policy. This means that the maximum permissible FDI in an applicant SP cannot exceed 49% (including indirect foreign investment). While it may not be possible to draw a very fine line here, the implication appears to be 2
3 that overreaching affirmative vote rights and other operational control levers by the OEM will be frowned upon. The rules, however, recognise that equity participation of foreign OEMs will not prevent other arrangements for sharing management rights in the JV mutually agreed between the SP and the OEM. It is unclear how far the Government will permit strong operational oversight and control rights in the JV, whether as a part of the JV agreement or other technology (and similar) agreements. There does not appear to be a bright line test for control. Therefore, there is some risk that OEMs will struggle to achieve a balance with their desired level of comfort in terms of operational oversight and governance and the need to ensure that these rights do not overstep the control threshold as understood under the FDI regulations. In fact, to underscore the need for simplicity and clarity, the rules unequivocally state that no pyramiding of FDI in Indian holding companies or in Indian entities subscribing to the shares or securities of the applicant SP would be permitted. Aggressive structuring and back door financing options will not be looked at favourably as it appears that anti-avoidance structures will be resisted. A business-friendly approach is evident from the flexibility provided to the applicant SP in relying upon its group company(ies) experience in an identified segment, where such a group company with requisite experience and expertise may synergise its capabilities with the SP by executing a deed of adherence providing the MoD and the SP an irrevocable right to access, enter upon and use its facilities for duration of the strategic partnership. However, in such situations, it has been clarified that the FDI restrictions on the applicant SP shall also apply to such segment group company. It is not clear if the group company will be subject to additional restrictions (e.g. on change in ownership/control or raising financing, etc.). OEMs are expected to be jointly responsible, along with the SP, for certification and quality assurance of the platforms supplied to the MoD. Importantly, OEMs are required to provide a formal acceptance by their relevant governments in relation to the proposed technology transfer arrangements prior to the issue of a request for proposal (RFP). Such a commitment may also be supported by intergovernmental arrangements signed between the countries at the award stage in relation to the defence contract. It is unclear how this requirement will be met at the RFP stage. This needs to be monitored. Using special purpose vehicles SPs are allowed to incorporate project specific special purpose vehicles or use existing subsidiaries (SPVs) in respect of specific projects or contracts awarded by the MoD when procurement contracts are required. The rules, however, provide that SP will be the primary contracting party with a clear restriction on assignment of such a contract while allowing the integration of the required system or systems by the SP or its SPV. Shareholding of an SP in the SPV must be locked in for the term of the strategic partnership. A limited carve out is provided in the case of companies providing technology for a project or a contract. Such companies will be permitted a maximum of 49% ownership in such an SPV subject to ownership and control of such SPV continuing to remain with the SP. The FDI restrictions applicable to SPs would also apply to such SPVs. 3
4 From a liability standpoint, the SP would have overall responsibility of performance to the MoD. The SP and the SPV would be jointly and severally liable in respect of the contract so awarded. It has been clarified that the SPV s joint and several liability with the SP will be prorated to the extent of its workshare, as agreed at the time of approval of the SPV by the MoD. Segments for SPs PART B CLASSIFICATION OF SEGMENTS AND PARAMETERS FOR SELECTION OF SPS There are identified segments in which strategic partnerships will be allowed. Presently, Chapter VII of the DPP 2016 only provides the following segments for which SPs can be formed: Submarines Fighter aircrafts Armoured fighting vehicles (AFV)/ main battle tanks (MBT) Helicopters (collectively, Group 1 Segments). However, it is interesting to note that a Task Force Report (TF Report) published by the MoD in December 2016 suggested the same segments for SPs and classified them as Group 1 Segments. Apart from the general parameters for selection as an SP in any of the Group 1 Segments, the applicant would also have to adhere to segment specific conditions. We are not covering these in detail as we expect these to be described in much more detail in the relevant RFPs. In addition to the products mentioned above, the TF Report also mentioned a second set of segments which comprise of the following: Ammunition, including smart ammunition (recommended by TF Report) Metallic material and alloys (crystallised by TF Report but not immediately recommended) Non-metallic material, including composites and polymers (crystallised by TF Report but not immediately recommended) (collectively, Group 2 Segments). Chapter VII of the DPP 2016 currently does not mention Group 2 Segments, however, the Group 2 Segments may be notified later by the MoD. Selection parameters Selection of SPs is subject to various parameters which are summarised below for both the Group 1 and Group 2 Segments. Apart from the following parameters, it is unclear whether selection of an SP will also be subject to verification and comparison by the MoD amongst bidders from each category (as suggested in the TF Report). A verification and comparative evaluation amongst bidders was suggested in the TF Report, but has not been incorporated into Chapter VII of the DPP Currently, it is difficult to envisage the timeline for the MoD to be able to select the SP for any category. 4
5 Sl. No. Selection criteria Group 1 Segment Group 2 Segment 1. Restriction on Segments Only one SP per Segment. Two (or more) SPs may be allowed by the MoD. 2. Technical Gate 3. Financial Gate Demonstrable capability for integration of System of Systems i.e. integration of a system with multiple technologies of major systems like aircrafts, ships, chemical plants, power plants, automobiles, etc. as specified in the expression of interest (EoI). No specific thresholds specified; would be indicated in the EoI/RFP. The TF Report, however, suggests the following thresholds which may be indicative of what is to be expected in this Segment: Turnover: a consolidated turnover of INR 40,00,00,00,000 (Indian Rupees Forty billion) for each of the last 3 (Three) financial years. Assets: consolidated capital assets at gross book value of INR 20,00,00,00,000 (Indian Rupees Twenty billion). Revenue growth: consolidated revenue growth of 5% (Five per cent) per annum in at least 3 (three) of the last 5 (five) financial years. Demonstrable that the applicant is an engineering and/or a process technology company having commercially supplied products. The TF Report has suggested the following thresholds: Turnover: consolidated turnover of INR 5,00,00,00,000 (Indian Rupees Five billion) for each of last 3 (Three) financial years. Assets: capital assets at gross book value should be INR 1,00,00,00,000 (Indian Rupees One billion). 4. Other Conditions Credit score: minimum credit rating (long term/issuer rating) equivalent to CRISIL/ICRA A (stable) as on the date of the application. Promoters and directors of the applicant SP and its group companies must not be wilful defaulters (as classified by the RBI). In addition, the TF Report has prescribed the following additional conditions which have not been incorporated into Chapter VII of the DPP 2016: that the applicant must show robust governance practices (including no qualifications in an applicant SP s audit report) Same as TF Report suggestions for Group 1 Segments. 5
6 thorough evaluation of the debt restructuring and non-performing assets of the applicant SP. Rationale for focus under Segment 1 Chapter VII of DPP 2016 currently requires an SP to maintain focus on a core area of expertise with only one SP selected per segment. The single SP per segment concept is aimed to foster economies of scale and prevent wastage and leakages which may increase the risk premium and costs for the applicant SPs due to competition. Since Group II Segments are more bulk produced products, it is expected that two (or more) SPs for a particular Group II Segment may be allowed by the MoD. Verification stage The verification stage suggested by the TF Report envisages an on-site verification by an evaluation committee set up by the MoD. The assessment of an applicant SP in this stage will be based on the criteria mentioned below (on the basis of figures certified by a statutory auditor): Applicant SP solvency ratio should not be higher than 1.5:1 (total outside debt to net worth ratio); Modified applicant SP solvency ratio should not be higher than: 2.5:1 (total outside debt plus financial guarantees to net worth ratio); Return on invested capital (RoI) of the applicant SP (EBITDA divided by average invested capital): Average of RoI for last 3 (Three) financial years should not be less than 9% (Nine per cent); and Debt divided by EBITDA for the applicant SP should not be higher than 3:1. It is unclear why the TF Report recommended a verification, since it is safe to assume that compliance with all the financial, technical and other criteria would be required at the time of the contract award and later. Comparative analysis and final selection of SP While not incorporated in the DPP 2016, final stage as per the TF Report would include a simple comparative analysis done by a marking system of all the applicant SPs. The TF Report contemplated the following weightage for each of the criteria: Criteria Weightage Technical 40% Financial 40% Segment Specific Conditions 20% 6
7 Comment The current Buy and Make category of the DPP 2016 relies heavily on foreign OEMs to provide technology which is otherwise not available in India. The aim of the strategic partnership policy is to reduce reliance on foreign OEMs and develop indigenous capability in line with the Make-in-India drive. The strategic partnership policy aims to develop not only large scale private sector enterprises, but also Micro, Small & Medium sector enterprises. - Bharat Anand (Partner) Bhaskar Banerji (Senior Associate) and Divya Gupta (Associate) For any queries please contact: editors@khaitanco.com For private circulation only The contents of this are for informational purposes only and for the reader s personal non-commercial use. The views expressed are not the professional views of Khaitan & Co and do not constitute legal advice. The contents are intended, but not guaranteed, to be correct, complete, or up to date. Khaitan & Co disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident or any other cause Khaitan & Co. All rights reserved. Mumbai New Delhi Bengaluru Kolkata One Indiabulls Centre, 13 th Floor Ashoka Estate, 12th Floor Simal, 2nd Floor Emerald House Tower 1 841, Senapati Bapat Marg 24 Barakhamba Road 7/1, Ulsoor Road 1 B Old Post Office Street Mumbai , India New Delhi , India Bengaluru , India Kolkata , India T: T: T: T: E: mumbai@khaitanco.com E: delhi@khaitanco.com E: bengaluru@khaitanco.com E: kolkata@khaitanco.com
GUIDELINES ON PRIVATE EQUITY INVESTMENT IN INSURANCE COMPANIES
NEWSFLASH GUIDELINES ON PRIVATE EQUITY INVESTMENT IN INSURANCE COMPANIES 8 December 2017 On 5 December 2017, the Insurance Regulatory and Development Authority of India (IRDAI) published a set of guidelines
More informationNEWSFLASH FEMA CROSS BORDER MERGER REGULATIONS ISSUED BY RBI. 4 April 2018 Background
NEWSFLASH FEMA CROSS BORDER MERGER REGULATIONS ISSUED BY RBI 4 April 2018 Background Section 234 of the Companies Act, 2013 (Companies Act) and Rule 25A of the Companies (Compromises, Arrangements and
More informationDUE DILIGENCE IN SELECTION OF HOTEL OPERATORS
DUE DILIGENCE IN SELECTION OF HOTEL OPERATORS January 2017 Introduction The appointment by a hotel owner ( Owner ) of a hotel operator ( Operator ) to manage a hotel is one of the most important decisions
More informationSEBI REVAMPS ELECTRONIC BOOK MECHANISM FOR PRIVATE PLACEMENT OF LISTED DEBT SECURITIES 2016 CIRCULAR POSITION CURRENT POSITION
UPDATE SEBI REVAMPS ELECTRONIC BOOK MECHANISM FOR PRIVATE PLACEMENT OF 24 January 2018 Background The Securities and Exchange Board of India (SEBI) has sought to streamline the framework for electronic
More informationRELATED ENTITY LENDING: THE SECTION 185/186 CONUNDRUM - FINALLY SETTLED?
UPDATE RELATED ENTITY LENDING: THE SECTION 185/186 CONUNDRUM - FINALLY 22 May 2018 One of the most significant legal reforms of the country in recent times has been the enactment of the Companies Act,
More informationTHE COMPANIES (AMENDMENT) ACT 2017 INCREMENTAL REFORM CONTINUES. The key changes brought about by the Amendment Act are highlighted below:
NEWSFLASH THE COMPANIES (AMENDMENT) ACT 2017 INCREMENTAL REFORM CONTINUES 4 January 2018 Introduction The Companies Act, 2013 (Act) was the legislative outcome of a process that had begun a decade earlier.
More informationDefence Manufacturing Sector
1 Department of Industrial Policy and Promotion Department of Defence Production Defence Manufacturing Sector Achievements Report February 13, 2017 MAKE IN INDIA Table of Contents 03 Policy Initiatives
More informationUnion Budget Impact on the M&A & Private Equity investments in India
Union Budget 2014-15 Impact on the M&A & Private Equity investments in India July 2014 Content 2 03 Overview 04 Key policy initiatives 05 Key incentives to capital markets 06 Direct tax proposals 11 Other
More informationADDENDUM-1 to RFP / Draft Concession Agreement
ADDENDUM-1 to RFP / Draft Concession Agreement Sl Original Revised as per Addendum-1 REQUEST FOR PROPOSAL 1 13 Schedule of Bidding Process The Authority shall endeavour to adhere to the following schedule:
More informationLONG TERM SUBSCRIBE. IPO Report HINDUSTAN AERONAUTICS LTD. IPO Details. Research Analyst : Astha Jain
IPO Report HINDUSTAN AERONAUTICS LTD LONG TERM SUBSCRIBE IPO Details Issue Date 16 th Mar-20 th Mar 2018 Price Band Bid Lot Face Value Listing Offer For Sale Fresh Issue ---- Pre Issue Eq Shares Post Issue
More informationTHE INDIAN OFFSET STORY: A BLOCKBUSTER AWAITING A SCRIPT
THE INDIAN OFFSET STORY: A BLOCKBUSTER AWAITING A SCRIPT NEW DELHI MUMBAI BANGALORE February 14, 2014 Alina Arora Partner Luthra & Luthra Law Offices MEETING OFFSET REQUIREMENTS - KEY CHALLENGES 1. Who
More informationOUR JOURNEY ABOUT US. Start of our journey in Mumbai 5 professionals. New Delhi office is set up 17 professionals
DEFENCE & AEROSPACE ABOUT US OUR JOURNEY Set up in 2001 with the aim of bringing together a diverse set of professionals to deliver effective solutions for clients, Economic Laws Practice (ELP) is today
More informationPiecing Together the Succession Puzzle
Piecing Together the Succession Puzzle ABOUT KHAITAN & CO Established: 1911 in Kolkata by Late Debi Prasad Khaitan, a member of the Constituent Assembly which framed the Constitution of India Offices:
More informationIFRS Notes. 5 January 2015 Issue 2015/01. Government announces roadmap for implementation of Ind AS
IFRS Notes 5 January Issue /01 Government announces roadmap for implementation of Ind AS IFRS Notes 5 January The new year heralds an important update; on 2 January the Ministry of Corporate Affairs (MCA)
More informationBANGALORE INTERNATIONAL AIRPORT LIMITED. Administration Block, Kempegowda International Airport, Devanahalli, Bangalore
BANGALORE INTERNATIONAL AIRPORT LIMITED Administration Block, Kempegowda International Airport, Devanahalli, Bangalore 560 300 INVITATION TO EXPRESSION OF INTEREST Invitation to Expression of Interest
More information(1) Once details of business plan is finalised between a vendor & the IOP, can the vendor apply for banking?
FAQs PERTAINING TO OFFSET BANKING (1) Once details of business plan is finalised between a vendor & the IOP, can the vendor apply for banking? Ans: The vendor shall be required to apply for banking offset
More informationIndia s Revised Offset Guidelines DIOA / GOCA Fall 2012 Conference Brewster, Mass.
India s Revised Offset Guidelines DIOA / GOCA Fall 2012 Conference Brewster, Mass. Robert S. Metzger 750 Ninth Street, N.W., Ste 710 Washington, D.C. 20001 rmetzger@rjo.com www.rjo.com Where are the markets?
More informationPROFESSIONAL PROGRAMME
1 PROFESSIONAL PROGRAMME SUPPLEMENT FOR STRATEGIC MANAGEMENT, ALLIANCES AND INTERNATIONAL TRADE MODULE 3 - PAPER 5 (Relevant for Students Appearing in December, 2015 Examination) Disclaimer- This document
More informationINVITATION FOR EXPRESSION OF INTEREST
INVITATION FOR EXPRESSION OF INTEREST for the Completion of Development & Management of an Upper Upscale 5 Star Deluxe Hotel at Kempegowda International Airport, Bengaluru Name and address of entity seeking
More informationPower Plant. Future Products. Helicopters. Aircraft. System and Accessories. Avionics. IPO Report-Hindustan Aeronautics Ltd 16 th March, 2018
IPO Report-Hindustan Aeronautics Ltd 16 th March, 2018 Issue Period 16 Mar 2018-19 Mar, 2018 Security Type Equity Issue Size No. of Shares 3,61,50,000 Price Band 1215-1240 Face Value 10 Market Lot 12 Minimum
More informationEY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector
24 June 2016 EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector Further to the FDI policy reforms in a number of sectors (including defence) as introduced
More informationINR 250 Billion to be invested in 7-8
DEFENCE MANUFACTURING SECTOR IN INDIA COME AND INVEST IN INDIA WHY INDIA? BECAUSE WE ARE 3rd largest armed forces in the world. 40% of budget spent on capital acquisitions. 60% of requirements met by imports.
More informationEY Regulatory Alert. Executive summary. ECB Policy- revised framework. 04 December 2015
04 December 2015 EY Regulatory Alert ECB Policy- revised framework Executive summary Regulatory Alerts cover significant regulatory news, developments and changes in legislation that affect Indian businesses.
More informationDISCUSSION PAPER SUBJECT: FOREIGN DIRECT INVESTMENT (FDI) IN DEFENCE SECTOR
DISCUSSION PAPER SUBJECT: FOREIGN DIRECT INVESTMENT (FDI) IN DEFENCE SECTOR 1.1 The Department of Industrial Policy and Promotion has decided to release Discussion Papers on various aspects related to
More informationRules Governing Public Procurement
Rules Governing Public Procurement General Financial Rules, (GFR) 2005. State GFRs. Delegation of Financial Powers Rules (DFPR), 1978. Guidelines issued by the Central Vigilance Commission (CVC). Guidelines
More informationReserve Bank of India releases draft guidelines for on tap licensing of Universal Banks in the private sector
11 May 2016 EY Regulatory Alert Reserve Bank of India releases draft guidelines for on tap licensing of Universal Banks in the private sector Executive summary In 2013, the Reserve Bank of India (RBI)
More informationBANGALORE INTERNATIONAL AIRPORT LIMITED. Administration Block, Kempegowda International Airport, Devanahalli, Bengaluru
BANGALORE INTERNATIONAL AIRPORT LIMITED Administration Block, Kempegowda International Airport, Devanahalli, Bengaluru 560 300 INVITATION TO EXPRESSION OF INTEREST Invitation to Expression of Interest
More informationReserve Bank of India releases final guidelines for on tap licensing of Universal Banks in the private sector
5 August 2016 EY Regulatory Alert Reserve Bank of India releases final guidelines for on tap licensing of Universal Banks in the private sector Executive summary In 2013, the Reserve Bank of India (RBI)
More informationNewsflash: India FDI Policy - Certain Clarifications 1 April 2010
Newsflash: India FDI Policy - Certain Clarifications 1 April 2010 Newsflash: Certain Clarifications under Foreign Direct Investment (FDI) Policy The Department of Industrial Policy and Promotion (DIPP)
More informationForeign Exchange Management (Borrowing and Lending) Regulations, 2018
Regulatory Alert 26 December 2018 Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 The Reserve Bank of India ( RBI ) vide Notification No. FEMA 3(R)/2018-RB dated 17 December 2018,
More informationHindustan Aeronautics Ltd
IPO Note "SUBSCRIBE" 16th Mar 2018 ISSUE DETAIL : COMPANY OVERVIEW: Type Issue Size Offer Price Min App Size Issue Open Issue Close Shares Offer Face Value Lead Mgrs Listing Registrar 100% Book Building
More informationNew Platform for SMEs in India to Provide a Tax Efficient Exit for Investors
Real Estate Laws Foreign entities cannot engage in real estate business in India. The only permissible transaction involving real estate is where the non-resident party carries out development of a minimum
More informationRegulatory Alert Stay Ahead
India Tax & Regulatory For private circulation only 26 March 2018 p Regulatory Alert Stay Ahead RBI notifies provisions relating to cross border mergers, amalgamations and arrangements Issue no: RA/06/2018
More informationECCO Symposium No 6 June 20, 2013
www.pwc.com/india ECCO Symposium No 6 June 20, 2013 Contents 1 Policy Regime 2 Impact of DPP 2013 3 The Offset Policy 4 The unfinished agenda 2 Key Messages Focus on domestic manufacturing Encourage foreign
More informationAVOID. IPO Report GARDEN REACH SHIPBUILDERS & ENGINEERS LTD. IPO Details. Research Analyst : Astha Jain
IPO Report AVOID IPO Details Issue Date 24 th Sept-26 th Sept 2018 Price Band 115-118/Share * Bid Lot 120 & in multiplethereof Face Value Rs 10/Share Listing BSE, NSE Offer For Sale 29,210,760 Eq Shares
More informationGuidelines On Private Equity Investment In Insurance Companies - Insurance - India
Page 1 of 9 We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here. Close Me Home > India > Insurance
More informationUnion Budget : Impact on the Private Equity investments in India. Grant Thornton India LLP. All rights reserved.
Union Budget 2013-14: Impact on the Private Equity investments in India Grant Thornton India LLP. All rights reserved. Union Budget 2013-14 Impact on the Private Equity investments 2 Contents 03 An overview
More informationIDSA ISSUE BRIEF. Summary. Defence Offset Guidelines - A Languorous Journey So Far. Amit Cowshish
IDSA Issue Brief IDSA ISSUE BRIEF 1 Defence Offset Guidelines - A Languorous Journey So Far Amit Cowshish Amit Cowshish is a former Financial Advisor (Acquisition) & Additional Secretary and Member Defence
More informationRegulatory Alert Stay Ahead
India Tax & Regulatory For private circulation only 20 December 2017 p Regulatory Alert Stay Ahead FEMA (Transfer or issue of security by a Person Resident Outside India) Regulations, 2017 Issue no: RA/17/2017
More informationCBDT Circular - FAQs on indirect transfer related provisions under the Income-tax Act
22 December 2016 CBDT Circular - FAQs on indirect transfer related provisions under the Income-tax Act The Finance Act, 2012 introduced indirect transfer related provisions under Section 9(1)(i) of the
More informationUnion Budget Impact on the Real Estate sector
Union Budget 2014-15 Impact on the Real Estate sector July 2014 Content 2 03 Overview 04 Key policy initiatives 05 Direct tax proposals 10 Indirect tax proposals Overview The real estate sector has witnessed
More informationUS CHALLENGE TO INDIAN EXPORT SUBSIDIES AT THE WHAT NEXT?
US CHALLENGE TO INDIAN EXPORT SUBSIDIES AT THE WTO: WHAT NEXT? September 2018 www.elplaw.in /elplaw.in /ELPIndia /company/economic-laws-practice Background US challenged the following Indian export subsidies
More informationReliance Group and Dassault's joint venture gets CCI approval
JANUARY, 2017 MAHESWARI&CO Advocates & Legal Consultants NEWSLETTER Reliance Group and Dassault's joint venture gets CCI approval The Competition Commission of India (CCI) allowed a joint venture between
More informationUS TAX REFORM, 2017 AN INDIAN PERSPECTIVE
US TAX REFORM, 2017 AN INDIAN PERSPECTIVE BACKGROUND US tax reform has arrived! The Tax Reform enacted by Congress significantly modifies key areas of US tax law, including many international tax provisions.
More informationSEBI regulations amended to facilitate insolvency resolution
Regulatory Alert June 8, 2018 SEBI regulations amended to facilitate insolvency resolution The Securities and Exchange Board of India ( SEBI ) has issued much-awaited notifications amending its regulations,
More informationCorrigendum 2. Modifications in the Tender Document
Corrigendum 2 Modifications in the Tender Document Tender No. : MPSEDC/MKT/2010/188 Sl. No. Page No. Existing Clause Modified Clause 1 7 SLA Monitoring 7 Exit Process Support 2 8 Eligibility 3 8 Eligibility
More informationCorporate Law Alert April 2, J. Sagar Associates advocates and solicitors. Liberalized Remittance Scheme for Resident Individuals
Liberalized Remittance Scheme for Resident The Reserve Bank of India (RBI) vide A.P. (DIR Series) Circular No. 90 dated March 06, 2012 has clarified the following with respect to the Liberalized Remittance
More informationTender No: A Notice Inviting Bid (E-Tender)
Tender No: 05-18-A-0006 Notice Inviting Bid (E-Tender) 1.1. Delhi, National Capital Region (NCR) which comprises of the Indian Capital New Delhi, along with its satellite towns is the most populous urban
More informationDecoding defence Indian Defence Procurement
www.pwc.com/india Decoding defence Indian Defence Procurement Opportunities for investments and offsets. 2 Indian Defence Sector Introduction Big Opportunity USD 50 Bn in 5 years Largely import dependent
More informationSUMMARY OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016
DSK Legal Knowledge Center Updates on May, 2016 Banking and Finance SUMMARY OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 The Insolvency and Bankruptcy Code ( Insolvency Code ), had been introduced in the
More informationThis issue of First Notes highlights key aspects of the guidance note issued by the ICAI.
FIRST NOTES KPMG in India The ICAI issues a guidance note on accounting for expenditure on corporate social responsibility (CSR) activities 28 May 2015 First Notes on: Financial Reporting Corporate law
More informationI. New Indian Accounting Standards notified
March, 2015 I. New Indian Accounting Standards notified Key Highlights Indian Accounting Standards notified Foreign investment norms in insurance companies Tribunal clarifies issue of location savings
More informationRFQ for CONSULTANCY FOR PROVIDING LEGAL ADVISORY SERVICES TO IPE GLOBAL LIMITED FOR THE PAHAL PROJECT
RFQ for CONSULTANCY FOR PROVIDING LEGAL ADVISORY SERVICES TO IPE GLOBAL LIMITED FOR THE PAHAL PROJECT Ref: IPE-USAID_PAHAL-2017 (RFQ) 002 Location: New Delhi based with travel Or Home based with travel
More informationINSURANCE NEWSLETTER JUNE 2016
REGULATORY UPDATES REVISED GUIDELINES FOR CORPORATE GOVERNANCE FOR INSURERS IN INDIA ISSUED The Insurance Regulatory Development Authority of India ("IRDAI") has, by way of a circular dated 18 May, 2016
More informationGains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India
KPMG FLASH NEWS KPMG IN INDIA Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India 5 August 2014 Background
More informationNOTICE INVITING TENDER (NIT) E Tender No. NMRC/Stn./Housekeeping/22/2018/HK-C1. Description
NOTICE INVITING TENDER (NIT) E Tender No. NMRC/Stn./Housekeeping/22/2018/HK-C1 Date:07.08.2018 S.N Heads 1 Name of the Bid RFP for Mechanized Cleaning and Housekeeping Works at NMRC Stations (Package 1)
More informationJ&K State Power Development Corporation Limited PARNAI HYDROELECTRIC PROJECT. (3x12.5 MW) BIDDING DOCUMENT FOR
J&K State Power Development Corporation Limited PARNAI HYDROELECTRIC PROJECT (3x12.5 MW) BIDDING DOCUMENT FOR "ENGINEERING, PROCUREMENT AND CONSTRUCTION (EPC) CONTRACT" SECTION I OF TENDER DOCUMENTS INVITATION
More informationSALIENT FEATURES OF SEBI (FOREIGN PORTFOLIO INVESTORS) REGULATIONS, 2014
SALIENT FEATURES OF SEBI (FOREIGN PORTFOLIO INVESTORS) REGULATIONS, 2014 The Securities and Exchange Board of India has made regulations to put in place a framework for registration and procedures with
More informationSecurities and Exchange Board of India and the Reserve Bank of India issue guidelines for international financial services centres
8 April 2015 EY Regulatory Alert Securities and Exchange Board of India and the Reserve Bank of India issue guidelines for international financial services centres Executive summary Regulatory Alerts cover
More informationSinghi & Co. News Letter - July 2015 Quality services for seven decades. Assurance and Advisory
Singhi & Co. News Letter - July 2015 Quality services for seven decades Assurance and Advisory INDIAN ACCOUNTING STANDARDS (IND AS) Preamble On February 16, 2015, the Ministry of Corporate Affairs (MCA)
More information(b) Preference shares and debentures must be fully paid up and must be mandatorily and fully convertible.
Delhi Mumbai Gurgaon Bengaluru Celebrating over 40 years of professional excellence Highlights i. Warrants and partly paid shares as eligible FDI instrument ii. Clarification on facility sharing agreements
More informationAmendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, Executive summary
23 September 2013 August 2013 EY Regulatory Alert Amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Executive summary Regulatory Alerts cover significant
More informationDelhi Metro Rail Corporation Limited. (A joint venture of Government of India & Government of Delhi)
(A joint venture of Government of India & Government of Delhi) Name of Tender: Tender for Awarding Exclusive Advertising Rights Inside Selected Metro Stations from Samaypur Badli to Arjangarh on Line-2
More informationKINFRA DEFENSE PARK PALAKKAD, KERALA REQUEST FOR PROPOSAL
KINFRA DEFENSE PARK PALAKKAD, KERALA REQUEST FOR PROPOSAL For the Selection of Consultants for Market Survey and Demand Assessment of Defence Products/Ancillary Equipments and Feasibility Report Preparation
More informationFrequently Asked Questions Foreign Portfolio Investor
Frequently Asked Questions Foreign Portfolio Investor Question 1 Who is a Foreign Portfolio Investor (FPI)? Response FPI is a resident in a country other than India, whose securities market regulator is
More informationNotice inviting applications for Empanelment of Forensic Auditors
Notice inviting applications for Empanelment of Forensic Auditors IFCI Limited invites applications from interested Chartered Accountants / Chartered Accounting Firms/ Cost Accountants and Cost Accountant
More informationIDSA ISSUE BRIEF. Summary. Exchange Rate Variation in Defence Contracts in India. Sandeep Verma. The author is a civil servant.
IDSA ISSUE BRIEF 1 Exchange Rate Variation in Defence Contracts in India Sandeep Verma The author is a civil servant. October 31, 2014 Summary Recent depreciation of the Indian Rupee saw increased advocacy
More informationTelecommunications Consultants India Ltd. (A Government of India Enterprise)
EOI Ref No: TCIL/PC/2018-19/EoI/Shirdi Smart City June 26, 2018 Expression Of Interest (EoI) for pre-bid tie up for Shirdi Smart City tender. Telecommunications Consultants India Limited (TCIL) intends
More informationSEBI tightens KYC norms for FPIs. Regulatory Alert Stay Ahead. In this issue: Background Key changes Our comments Do you know about Dbriefs?
India Tax & Regulatory For private circulation only 17 April 2018 p Regulatory Alert Stay Ahead SEBI tightens KYC norms for FPIs Issue no: RA/07/2018 In this issue: Background Key changes Our comments
More informationSTCI FINANCE LIMITED REQUEST FOR PROPOSAL ENGAGEMENT OF CONSULTANT FOR UNDERTAKING EQUITY VALUATION
REQUEST FOR PROPOSAL ENGAGEMENT OF CONSULTANT FOR UNDERTAKING EQUITY VALUATION 1. Background STCI Finance Limited ( STCI or the Company ), is a Systemically Important Non-Deposit Taking Non-Banking Financial
More informationFOREIGN EXCHANGE LAWS JUNE 2016
FOREIGN EXCHANGE LAWS INDEX Executive Summary... 3 1. Deferment of sale consideration and opening of an escrow account... 4 2. Guidance Note on compounding of contraventions under FEMA, 1999... 4 3. Procedural
More informationIFRS Notes. MCA notifies amendments to the consolidation exception for investment entities. 19 April kpmg.com/in
IFRS Notes MCA notifies amendments to the consolidation exception for investment entities 19 April 2016 kpmg.com/in Introduction On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Companies
More informationBangalore International Airport Limited
Bangalore International Airport Limited INVITATION TO EXPRESSION OF INTEREST Response to Queries 1 Invitation to Expression of Interest for carrying out Airfield Works Construction of New South Parallel
More informationPULSE THE VENTURE TERMS AND CONDITIONS
PULSE THE VENTURE TERMS AND CONDITIONS The Venture is a reality show reaching out to budding entrepreneurs across India, who will be given an opportunity to present their business ideas and the winner/winning
More informationEY Tax Alert. Executive summary
21 July 2015 EY Tax Alert India signs the Inter-Governmental Agreement with the United States of America to implement Foreign Account Tax Compliance Act to promote transparency on tax matters Executive
More informationBKM INDUSTRIES LIMITED
BKM INDUSTRIES LIMITED ( FORMERLY MANAKSIA INDUSTRIES LIMITED) POLICY ON DEALING WITH RELATED PARTY TRANSACTIONS AND MATERIALITY OF RELATED PARTY TRANSACTIONS The Board of Directors (the Board ) of BKM
More informationCBDT releases draft rules on CbCR and Master File requirements for public comments
from India Tax & Regulatory Services CBDT releases draft rules on CbCR and Master File requirements for public comments October 7, 2017 In brief The prolonged wait is finally over! Reiterating India s
More informationIndia: An Attractive Investment Destination. Department of Industrial Policy and Promotion Ministry of Commerce and Industry
India: An Attractive Investment Destination Department of Industrial Policy and Promotion Ministry of Commerce and Industry Indian economy: growth trajectory Indian economy at USD 4531 Billion (in PPP
More informationDefence Budget : The Imperative of Controlling Manpower Cost
IDSA Issue Brief Defence Budget : The Imperative of Controlling Manpower Cost Laxman Kumar Behera February 5, 2018 Summary Presenting the last full-fledged budget before the general elections of 2019,
More informationRequest for Proposal (RFP) for Corporate Agency Arrangement for Life Insurance, General Insurance & Standalone Health Insurance Business
Registered Office IFCI Tower, 61, Nehru Place, New Delhi 110019 Corporate Office Continental Chambers, 3 rd Floor, 142, M.G. Road, Numgambakkam, Chennai 600034 Regional Office West Mafatlal Chambers B,
More informationRating Methodology - Manufacturing Companies
RATING METHODOLOGY - MANUFACTURING COMPANIES Rating Methodology - Manufacturing Companies [In supersession of Rating Methodology - Manufacturing Companies issued in December 2016] Credit analysis of an
More informationJ A M M U & K A S H M I R S T A T E R O A D T R A N S P O R T C O R P O R A T I O N J&K SRTC BIDS FOR
J A M M U & K A S H M I R S T A T E R O A D T R A N S P O R T C O R P O R A T I O N J&K SRTC BIDS FOR Request for proposal (REP) for appointment of Operator for providing & operating 15 units of Electric
More informationPwC ReportingInBrief. Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 13
PwC ReportingInBrief Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 13 In brief The Ind AS Implementation Committee of the Institute of Chartered Accountants of India (ICAI) constituted
More informationJOINT VENTURE. Collaboration Agreements:
JOINT VENTURE A foreign company, depending upon its nature of business activities in India, may operate through an Indian company in any of the following manners:- As a joint venture with Indian partner
More informationDELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LTD. Website: or
DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LTD. Website: www.dmicdc.com or http://eprocure.gov.in. Addendum/ Corrigendum 1 dated November 17, 2017 Request for Proposals for Selection of Operator
More informationAmendments to SEBI Delisting and Takeover Regulations
KPMG FLASH NEWS KPMG in India 14 April 2015 Amendments to SEBI Delisting and Takeover Regulations Background The Securities Exchange Board of India (SEBI) on 24 March 2015 has notified amendments to regulations
More informationREGULATORY AFFAIRS BULLETIN ECONOMIC GROWTH REGULATIONS. Issue-VII October Contents
REGULATORY AFFAIRS BULLETIN ECONOMIC GROWTH REGULATIONS Contents Introduction...2 1. RBI guidelines...2 1.1 Review of ECB Policy...2 1.2 Prepayment of ECB...2 1.3 Rupee Loans to NRI Employees...3 1.4 Overseas
More informationOur endeavor is to provide conducive environment to the software exporters and create an impetus to the Software exports industry in India.
Software Technology Parks of India (DIT, Ministry of Communication & Information Technology, Govt. of India) International Infotech Park, Tower # 7, Floor # 6, International Infotech Park, Vashi Railway
More informationPolicy on Related Party Transactions With effect from 1 st July 2016
Regd. Office: 9 th Floor Antriksh Bhawan, 22 K G Marg, New Delhi-110001 CIN: U65922DL1988PLC033856 Policy on Related Party Transactions With effect from 1 st July 2016 1. INTRODUCTION & PURPOSE PNB Housing
More informationRating Methodology - Port Projects [In supersession of Rating Methodology Port Projects issued in June 2017]
RATING METHODOLOGY - PORT PROJECTS Rating Methodology - Port Projects [In supersession of Rating Methodology Port Projects issued in June 2017] Background India has 7,517-km long coastline with 13 major
More informationInsurance of Property & other assets of Reserve Bank of India for the period of July 1, 2018 to June 30, 2019
Insurance of Property & other assets of Reserve Bank of India for the period of July 1, 2018 to June 30, 2019 The Reserve Bank of India intends taking insurance cover of all the Properties & other assets
More informationSecurities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
Ministry : Securities and Exchange Board of India Notification No : LAD-NRO/GN/2008-2009/09/165992 Date : 10.06.2009 Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
More informationDraft Notification on computation of income, depreciation, losses, etc. for foreign companies that are resident in India
Direct Tax Alert 16 June 2017 Draft Notification on computation of income, depreciation, losses, etc. for foreign companies that are resident in India Background: With effect from financial year 2016-17,
More informationEY Regulatory Alert. Executive summary
12 January 2015 EY Regulatory Alert Central Government notifies the Depository Receipts Scheme 2014 for facilitating issue of Depository Receipts outside India Executive summary Regulatory Alerts cover
More informationThe resident investee company has to follow the relevant disclosure norms prescribed by the Securities Exchange Board of India (SEBI); and
Corporate Law Alert J. Sagar Associates advocates and solicitors Vol.17 May 31, 2011 RBI PLEDGE OF SHARES FOR BUSINESS PURPOSES The Reserve Bank of India (RBI) vide A.P. (DIR Series) Circular No.57 dated
More informationAmendments to the Insurance Laws (Amendment) Bill, 2008
Amendments to the Insurance Laws (Amendment) Bill, 2008 The Insurance Laws (Amendment) Bill, 2008 was introduced in Rajya Sabha on December 22, 2008. It proposes to amend the Insurance Act, 1938 (the Act),
More informationNEW BUSINESS DEPARATMENT, CORPORATE CENTRE, MUMBAI CORRIGENDUM 2
NEW BUSINESS DEPARATMENT, CORPORATE CENTRE, MUMBAI CORRIGENDUM 2 Request For Proposal for Procuring, Processing and Personalization of Cards No. NB/PS/SN/RFP/2018-19/001 dated 29.05.2018. 1 Page 42 On
More informationUnion Budget Tax Proposals impacting Financial Service Sector
Union Budget 2016-17 - Tax Proposals impacting Financial Service Sector 4 March 2016 Rationalization of TDS provisions for AIFs Differentiation between the tax treatment for AIFs and VCFs continue Rationalization
More informationEY India Real Estate EY s point of view on Amended Foreign Direct Investment (FDI) Policy on Construction Development Sector
16 vember 2015 EY India Real Estate EY s point of view on Amended Foreign Direct Investment (FDI) Policy on Construction Development Sector Q.1 When will be the proposed changes to the FDI Policy in construction
More informationSecurities and Exchange Board of India notifies regulations for Share Based Employee Benefits
31 October 2014 EY Regulatory Alert Securities and Exchange Board of India notifies regulations for Share Based Employee Benefits Executive Summary Regulatory Alerts cover significant regulatory news,
More information