FDI REGULATIONS
Outdated risk, renewed opportunities: A case for acquisition financing
India's financial landscape has evolved significantly, making the old restrictions on acquisition financing by banks outdated. Lifting these restrictions would allow Indian banks to participate in the growing M&A market, fostering transparency and boosting the competitiveness of Indian companies. This move aligns with the country's economic progress and strengthens its position in the global arena.
Audit alarm rings for Oppo, Realme as Indian units struggle with missing records, negative net worth
Auditors have raised concerns about the financial health and practices of Oppo and Realme's India units, citing bookkeeping issues, incomplete records, and a negative net worth for Oppo. These issues arise amidst ongoing regulatory scrutiny and investigations into the Chinese smartphone brands for alleged financial irregularities.
Land, laws, and clearances: India races to retain foreign billions
India is actively working to attract foreign investment. The government is streamlining regulations and offering tailored investment packages. Gross FDI increased significantly in the last financial year. Focus is on easing regulatory frameworks and implementing single-window systems. A task force is removing hurdles related to land and labor.
India plans stricter rules for companies with foreign ownership, sources say
India intends to revise foreign investment regulations. The goal is to monitor foreign-owned entities more closely. New rules may affect e-commerce and pharmaceutical companies. The government plans a new category for foreign-owned and controlled entities. Share transfers and restructurings could face stricter FDI rules. These changes aim to prevent bypassing FDI policies.
Reverse flipping: The billion-dollar Gharwapsi fueling India’s startup swagger
Indian startups are increasingly “reverse flipping” back from foreign jurisdictions due to regulatory reforms, maturing capital markets, and rising investor confidence. This shift reflects India’s growing appeal as a global startup hub with strong domestic support.
Amazon India board clears merger of logistics arm with marketplace entity
Amazon is merging its logistics arm, Amazon Transportation Services (ATS), with its primary marketplace entity, Amazon Seller Services, to streamline operations and reduce compliance requirements. The National Company Law Tribunal has granted interim clearance for the merger. While ATS saw a revenue increase, Amazon aims to simplify its organisational structure amidst slowing e-tail market growth in India.
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SBI to sell over 13% stake in Yes Bank to Japan’s SMBC for Rs 8,889 crore
State Bank of India (SBI) has decided to sell over 413 crore equity shares, representing approximately 13.19% of Yes Bank's total shares, to Japan's Sumitomo Mitsui Banking Corporation (SMBC). The deal, valued at Rs 8,889 crore, involves selling the shares at Rs 21.50 each. The sale is contingent upon SMBC securing necessary regulatory approvals.
Elon Musk's Starlink on track for India entry after clearing DoT licence hurdle
Starlink has received a letter of intent from the DoT for a satcom license, marking progress in its plan to offer satellite broadband services in India. This followed Starlink's agreement to comply with security conditions, with some initially proposed rules being dropped.
No overseas investment if old lapses not fixed: RBI
The RBI is cracking down on corporates with unresolved ODI violations, setting an August 25, 2025 deadline. Companies failing to rectify past lapses face compounding or adjudication before making further foreign financial commitments. This move aims to address non-disclosure of financial details on old ODIs, potentially impacting future overseas deals if compliance isn't addressed promptly.
'Discussions preliminary': Yes Bank issues clarification on Japan's SMBC in talks to buy significant stake
Yes Bank has clarified reports of Sumitomo Mitsui Banking Corp.'s (SMBC) potential stake acquisition, stating that discussions are preliminary and speculative. While Yes Bank routinely explores opportunities to enhance shareholder value, the current talks do not warrant disclosure. SBI, holding a 24% stake, seeks a new owner after Yes Bank's turnaround following a central bank rescue.
Small foreign stakes in listed cos face banks' regulatory barriers
At least half a dozen large private and MNC banks, following a rigid interpretation of the law, have told such offshore investors that they can hold less than 10% in listed companies only after registering themselves as foreign portfolio investors (FPI) with the Securities & Exchange Board of India (Sebi).
Tuhin Kanta Pandey on smart regulations, F&O, investor protection and rebooting Sebi
SEBI Chairperson Tuhin Kanta Pandey highlights India's financial sector growth. Foreign investments and domestic capital are equally important. SEBI welcomes foreign investments and is open to dialogues. SEBI emphasizes investor protection and addresses concerns in the F&O market. SEBI aims for smart regulation, balancing regulatory needs with market efficiency. SEBI is building trust with market participants and intermediaries.
Karnataka HC stays proceedings against Amnesty India
The Karnataka High Court has put a hold on the money laundering case against Amnesty International India and its former director, Aakar Patel, until the next hearing. This decision follows allegations by the Enforcement Directorate that Amnesty circumvented FCRA regulations by receiving funds via the FDI route after its FCRA permission was revoked. Amnesty India denies any wrongdoing.
Zepto founders tap Edelweiss, others for Rs 1,500 crore structured debt to boost Indian ownership
Zepto founders Aadit Palicha and Kaivalya Vohra are raising about Rs 1,500 crore through structured debt to boost Indian ownership ahead of the company’s planned IPO, people familiar with the matter told us. Edelweiss Alternative Asset is anchoring the deal alongside domestic family offices and smaller credit funds. The loan carries a minimum interest rate of 16%, with an equity-linked upside pushing total returns closer to 18%.
Finmin targets to introduce Insurance Amendment Bill in Parliament during monsoon session
The Insurance Amendment Bill, allowing 100 percent FDI, may soon be introduced in Parliament. The finance ministry aims to table the bill during the monsoon session. The bill seeks to amend the Insurance Act, Life Insurance Corporation Act and IRDA Act. These changes promote policyholder interests and aim for 'Insurance for All by 2047'.
Top India trade body says enough is enough, ends all business with Pakistan
Following the Pahalgam terror attack, the Confederation of All India Traders (CAIT) has unanimously decided to completely cease trade with Pakistan. This decision, made during a national meeting in Bhubaneswar, reflects the strong condemnation of the attack and support for decisive government action against terrorism.
The Ripple Effect of US tariffs: Economic growth, inflation, and global trade dynamics
US tariffs risk slowing growth, clouding inflation outlook, and weakening the dollar. Treasury yields rise amid capital flight. Global fiscal stimulus builds, boosting gold. Multinational and domestic consumption-focused companies could outperform as uncertainty and stagflation risks rise.
Trade bodies decry ‘unregulated’ and ‘unethical’ practices of ecommerce and quick commerce companies
Under India’s foreign direct investment regulations, online marketplaces with foreign funding are prohibited from owning inventory or exercising control over sellers on their platforms. As a result, these quick commerce platforms have been increasing their Indian ownership. Zomato and Blinkit parent Eternal is reworking its ownership structure to become an Indian controlled entity.
ETtech Explainer: Why is Zomato parent Eternal capping foreign ownership at 49.5%?
By becoming a majority Indian-owned company, the parent of Zomato and Blinkit becomes an Indian-owned-and-controlled company (IOCC) under Indian law, letting it follow a different set of rules that allow more flexibility. From a strategic point of view, the move offers the company more control, more categories, and better margins.
Sebi bats for ‘optimal regulation,’ likely to revamp norms
SEBI Chairman Tuhin Kanta Pandey announced a potential regulatory overhaul to ease compliance burdens and modernize norms. SEBI is collaborating with the RBI and government to simplify investment rules for overseas funds and individuals in the Indian stock market, including exploring fungibility between FPI and FDI.
Govt issues clarification on issuance of bonus shares to existing foreign investors
The DPIIT has clarified that Indian companies in sectors prohibited for FDI can issue bonus shares to existing foreign shareholders, provided the shareholding pattern remains unchanged. This clarification, inserted into the FDI policy, addresses the permissibility of such issuances. FDI is crucial for India's infrastructure development and maintaining economic stability, although prohibited in certain sensitive sectors.
India plays hardball with the Dragon, may keep Chinese FDI on a tight leash
The Indian govt is maintaining strict investment checks on Chinese firms despite increasing calls for relaxing FDI rules. Authorities remain cautious due to concerns over ownership structures and policies influenced by the Chinese government, especially amid global trade tensions and the US-China trade war impacts.
India's fintech sector gets a governance boost with launch of India Fintech Foundation
India Fintech Foundation (IFF) was officially launched at Startup Mahakumbh as a proposed self-regulatory organization for the fintech industry. The foundation aims to facilitate responsible innovation, ensuring consumer protection and regulatory compliance. Key figures in the industry and government officials were present to emphasize its importance.
Trump’s ‘game theory’ may suit India, be precursor to the real deluge, and backfire on the US
Trump seeks to overhaul an international trading system he believes is unfair. He imposed unexpected tariffs, causing global concern. India is addressing this by offering tariff cuts and negotiating bilateral trade agreements. The US remains India's significant economic partner, highlighting the critical nature of these trade discussions.
Sebi weighs direct market access for foreigners
Sebi officials and market participants at last week's meeting underscored the need to expand the investor base for Indian risk assets, despite a near-five-fold surge in local investor accounts to 190 million in February 2025, from about 39 million six years ago.
IRDAI inducts 5 new members into insurance advisory panel
India's insurance regulator has appointed five new key members to its Insurance Advisory Committee (IAC), including leaders from banking, asset management, and insurance sectors, aiming to shape future regulations. The IAC will submit its report in three months, with a new draft bill suggesting an FDI increase to 100% and a composite licence framework.
Why is the race for your insurance premiums hotting up?
India's insurance sector is undergoing significant changes with policy shifts and new alliances. Allianz SE has ended its JV with Bajaj Group, aiming to collaborate with Jio Financial Services. Patanjali Ayurved has entered the general insurance market with a majority stake in Magma General Insurance. LIC plans to acquire a stake in a health insurer.
George Soros-backed Open Society Foundations, linked entities raided by ED
The Enforcement Directorate carried out searches at the offices of the Open Society Foundations (OSF) in Bengaluru over alleged violations of foreign exchange regulations. The investigation is focused on the misuse of funds sourced from foreign direct investment by the OSF and its associated entities.
ED slaps Rs 3.44 cr penalty on BBC WS India; fines 3 directors
The Enforcement Directorate imposed over Rs 3.44 crore in penalties on BBC World Service India for violating FDI regulations. Additionally, three directors were fined Rs 1.14 crore each. BBC WS India maintained 100% FDI despite a government-mandated 26% cap for digital media.
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