Government Approves Four (4) Proposals of Foreign Direct Investment (FDI)

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 240th Meeting held on 26th September 2016, the Government of India has approved four (04) of Foreign Direct Investment (FDI) proposals as per details enclosed. The following four (04) proposals have been approved:

S. No Item No Name of the applicant Gist of the proposal Sector FDI (Rs.  crore)
1 1 M/s DiaVikas Capital Private Limited Approval has been sought by M/s DiaVikas Capital Private Limited for buy-back of all the shares from the resident shareholders thereby increasing the foreign shareholding in the company to 100%. CIC Nil
2 4 M/s IFC FIG Investment Company I Approval has been sought by M/s IFC FIG Investment Company I (Transferee) to purchase 3,646,937 equity shares of Bandhan Financial Services Ltd. from International Finance Corporation, constituting 2.85% of the paid up equity share capital of Bandhan Financial Services Ltd. (BFSL). NBFC Nil
3 10 M/s IBM India Pvt Ltd Approval has been sought by IBM India Private Limited for the following:

i.            Merger of its Wholly owned subsidiaries i.e. Telelogic India Private Limited, Unica Softtech Systems India Private Limited and Bigfix Software (India) Private Limited (all dormant companies) into its another WoS, Sterling Commerce Solutions Private Limited which is an investing company.

ii.            Post-facto approval for Telelogic India Private Limited, a subsidiary of IBM India to act as an investee company which is holding investments in IBM Business Consulting Services Private Limited till its merger into Sterling India

iii.            Post facto approval for Network Solutions Private Limited for holding 2 shares in Telelogic India.

iv.            Post facto approval for Unica Softtech Systems India Private Limited, Bigfix Software (India) Private Limited and Sterling Commerce Solutions Private Limited for acting as dormant companies, after transfer of software development business to their holding company, IBM India.

v.            Post facto approval for M/s Micromuse India Private Limited, Cognos Software Private Limited, Ascential Software (India) Private Limited, Corio India Infotech Services Private limited and PSDI India Private Limited for acting as dormant companies, after transfer of software development business to their holding company, Telelogic India.

IT, Investing company Nil
4 14 M/s Sharekhan Limited Approval has been sought for:-

  1. Acquisition of up to 100% of the share capital of M/s Sharekhan Limited (‘SKL/Sharekhan’) other than the shares held in Sharekhan by M/s Human Value Developers Private Limited (‘HVD’) by M/s BNP Paribas SA France (‘BNPP’) and/or one or more of BNPs French subsidiaries
  2. Acquisition of 100% capital of HVD by BNPP and/ or one or more of BNPs French subsidiaries

 

NBFC/ financial services INR 2060

The following three (03) proposals have been deferred:

S. No. Item No Name of the applicant Gist of the proposal Sector
1 7 M/s Flag Telecom Singapore Pte Limited M/s Flag Telecom Singapore Pte. Limited, Singapore an indirect wholly owned subsidiary of Reliance Communications (RCOM), India has sought approval to acquire 100% shares of M/s Reliance Global Cloud Xchange Limited which has been recently incorporated in June 2016 by Indian residents. Telecom
2 9 M/s You Broadband India Limited M/s You Broadband India Limited (YBIL) has sought post facto approval for acquisition of 9,79,875 equity shares of its downstream company M/s Digital Outsourcing Private Limited (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares Telecom
3 12 M/s Idea Cellular Infrastructure Services Limited M/s Idea Cellular Infrastructure Services Limited (ICISL) is a wholly owned subsidiary of IDEA, which has become a foreign owned company with more that 50% foreign investment. Accordingly, ICISL is also deemed to have foreign investment in excess of 50% as a mirror image of its parent company. The proposal is to take on record the increase of foreign investment in ICISL beyond 50% and allow foreign investment in ICISL up to 67.5%. Telecom

The following four (04) proposals do not lie before FIPB:

S. No. Item No Name of the applicant Gist of the proposal Sector
1 5 M/s Perrigo API India Pvt. Ltd. Approval has been sought by M/s Perrigo API India Pvt. Ltd. to increase the stake of M/s Perrigo Netherlands B.V. from 85% to 90.35% by conversion of ECB loan and related outstanding interest into equity by issuing 2,84,12,274 equity shares. As per FIPB approval dated December 5, 2013, 100% FDI is permitted in the Company. Pharma
2 10 GS Sarin Post-facto approval has been sought by M/s Wuxi Yushou Medicare Private Limited for receiving foreign investment of 0.87 crores from Wuxi Yushou Medical Appliances Co. Ltd in November 2014, without FIPB approval. Medical devices
3 15 M/s Whizdm Innovations Private Limited The company has proposed to undertake activities of mutual fund distributor through its mobile application namely, Moneyview to assist its users in investing into mutual funds.In this context, the Company has sought:

 

(i)     Confirmation of the FIPB that the proposed activities of acting as a mutual fund distributor are under the automatic route.

(ii)    If the proposed activities fall under the other financial services sector which is under approval route, FIPB’s approval may be granted.

Financial Services
4 16 M/s BNP Paribas Asset Management India Private Limited M/s BNP Paribas Asset Management India Private Limited, (BNPP AMC), a 100% foreign owned company has sought approval for downstream investment into M/s MF Utilities India Private Limited (MFUI), which is registered with SEBI for acting as registrar to an issue in Category II* (to carry on the activity either as a registrar to an issue or as a share transfer agent).  For said investment, MFUI proposes to issue fresh equity share capital to BNPP AMC. Financials services

The following one (01) proposal has been withdrawn:

S. No. Item No Name of the applicant Gist of the proposal Sector
1 13 M/s Morgan Stanley India Primary Dealer Pvt. Ltd. M/s Morgan Stanley India Primary Dealer Pvt. Ltd. has sought approval for increasing equity participation from 75% to 100% by way of transfer of equity shares from M/s Morgan Stanley India Capital Private Limited (indirectly owned by Foreign Investor) to M/s Morgan Stanley Mauritius Company Limited, Mauritius by amending the earlier approval. Financial Services

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=151866

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