The current FDI norms impose a ceiling of 24 per cent FDI
for companies in the SSI sector i.e. small scale units having
capital investment in plant and machinery not exceeding Rs.
50,000,000 (USD 1,250,000). Further, SSI units with foreign
investment exceeding the notified sectoral cap are liable to
lose their status as SSI units.
With a view to liberalizing the SSI sector and augmenting
economic activity in the country, it is announced that FDI
norms governing SSIs would be relaxed and a notification is
likely to be tabled before Parliament, enabling an increase in
the limits of FDI in the SSI sector.
If such notification is passed, SSI units would be eligible
to raise foreign equity in accordance with caps governing the
sectors in which they operate, thereby improving their access
to technology and capital and assisting in the growth and
modernization of the sector.
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The ever non-quenchable thirst for foreign investment on our part and the ever non-diminishing power hunger on the part of foreign investors culminating in different form of Joint Venture Agreement (JVA), Share Purchase Agreement (SPA) and Share Holders Agreement (SHA) result in inserting an omnibus arbitration clause to settle disputes that arise from these agreements.
With a view to mobilizing foreign investment through issue of preference shares, the Government of India (GOI) had earlier permitted issuance of equity shares, preference shares, convertible preference shares by Indian companies to persons resident outside India in respect of financial projects / industries.
In today’s dynamic and competitive environment, IP rights are key elements needed to maintain an edge in the market. It is crucial that the companies understand that what can be protected and how within their respective countries.
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