News

Rights Entitlement: Sebi puts valuation prescription in place for subscription via renounced rights

Rights Entitlement: Sebi puts valuation prescription in place for subscription via renounced rights

The world at large is grappling with the ongoing Covid -19 pandemic. While it may not be possible to gauge the human toll and economic fallout at this point, it is amply clear that China is fast losing its stronghold as the global factory owing to the trust deficit that exists today between China and the rest of the world. In such a scenario, India is poised to be the next best destination for entities which are looking at decoupling from China, they would be well served to look towards India. India could pave the road through a regime of incentives to sweeten the deal for such entrants.
However, at the same time the country would want to safeguard its own interests as well. In pursuit of such interest protection, the DPIIT released the press note amending the FDI policy to make investment from countries which share land borders with India under Government approval route. Further, another change was brought about in the Foreign Exchange Management Act, 1999 (FEMA) and its regulations with respect to the pricing guidelines for the right issue, if renounced in favour of the non-resident.

 

Top