‘India expects to seal free trade agreement with EU by next year’
NEW DELHI: The government has amended rules governing companies with respect to prior approval being mandatory for investments by entities and individuals from countries that share a land border with India.
The rules pertaining to prospectus and allotment of securities under the Companies Act, 2013 were amended by the corporate affairs ministry on May 5.
“... no offer or invitation of any securities under this rule shall be made to a body corporate incorporated in, or a national of, a country which shares a land border with India, unless such body corporate or the national, as the case may be, have obtained government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019,” the ministry said in a notification.
The rule refers to Rule 14 in the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022.
The approval should be attached with the private placement offer cum application letter, the notification said.
About the amended rules, Akila Agarwal, Partner and Head M&A at Cyril Amarchand Mangaldas, said “this is a procedural change in the relevant forms consequent to Press Note 3”.
In April 2020, the Department for Promotion of Industry and Internal Trade (DPIIT) had issued Press Note 3 regarding foreign investments.
With the press note, the government had made its prior approval mandatory for foreign investments from countries that share land border with India to curb opportunistic takeovers of domestic firms following the Covid pandemic.
MUMBAI: Commerce and Industry Minister Piyush Goyal on Friday said India will be able to conclude a free trade agreement (FTA) with the European Union by next year.
Speaking at an event organised by the IMC Chamber of Commerce, Goyal said the country has already sealed pacts with the UAE and Australia, and is in negotiations with other countries or blocs including the EU, UK, Canada and Gulf Cooperation Council (GCC).
By next year, we would be able to conclude an FTA with the EU, Goyal said, adding that a delegation from Italy including its Foreign Minister is in New Delhi now with which he will be having deliberations.
Already, three rounds of negotiations have been held with the UK and there is a possibility of a fourth round soon, Goyal said, adding that he will be meeting the representatives on May 26-27. The FTAs will push growth in India and create more jobs as well, Goyal said, making it clear that the country is looking for fair, equitable and win-win partnerships with other countries or blocs.
Pointing out that the country recorded $38 billion in exports in April, the highest for the month after the busy March when businesses are keen to seal sales before the financial yearend, Goyal said that a closer look at the numbers indicates that India is emerging as a manufacturing hub for high-class products.
This indicates that programmes like the performance linked incentive scheme and the infrastructure push are bearing the expected results, Goyal said.
Pointing to GST collections of over Rs 1.67 lakh crore in March, Goyal said it is very redeeming that the economic activity is back beyond the expectations of the analysts’ community and added that the surge in purchasing managers’ indices is also reflective of the same revival.
Goyal said the country could attract foreign direct investment of $82 billion in 2021, its highest ever, because it has emerged as an isle of stability with virtues like rule of law, democracy and stable policies which attract businesses.