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RBI/2015-16/377 A.P. (DIR Series) Circular No. 63 April 21, 2016 To All Category – I Authorised Dealer Banks Madam/ Sir, Foreign Investment in units issued by Real Estate Investment Trusts, Infrastructure Investment Trusts and Alternative Investment Funds governed by SEBI regulations Attention of Authorised Dealers Category – I (AD Category - I) banks is invited to the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations 2000, notified vide Notification No. FEMA 1/2000-RB dated May 3, 2000, as amended from time to time and Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time (Principal Regulations). 2. With a view to rationalising foreign investment regime for Alternative Investment vehicles and to facilitating foreign investment in collective investment vehicles for real es...

RBI/DBR/2015-16/21 Master Direction DBR.PSBD.No.95/16.13.100/2015-16 April 21, 2016 Master Direction - Issue and Pricing of shares by Private Sector Banks, Directions, 2016 In exercise of the powers conferred by 35 A of the Banking Regulation Act, 1949 the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified. CHAPTER – I PRELIMINARY 1. Short Title and Commencement These Directions shall be called the Reserve Bank of India (Issue and Pricing of Shares by Private Sector Banks) Directions, 2016. These directions shall come into effect on the day they are placed on the official website of the Reserve Bank of India (RBI). 2. Applicability The provisions of these Directions shall apply to all private sector banks licensed by RBI to operate in India. 3. Definitions (i) In these Directions, unless the context otherwise requires, the terms herein shall bear the me...

The Reserve Bank has asked banks to offer Investment Advisory Services (IAS) through a seprate subsidiary,to avoid any conflict of intrest. The directive may make the country's largest lender,State Bank of India,rework its arrangement for IAS. Business Standard New Delhi,22 April 2016

Capital markets regulator Sebi today made electronic book mandatory for all private placement issues on debt basis for more than Rs 500 crore. Business Standard New Delhi,22 April 2016

The Reserve Bank of India (RBI) on Thursday came out with a master direction for merger of private sector banks and also mergers between non-banking finance companies (NBFCs) and banks. In another master direction, a compilation which consolidates instructions on rules and regulations framed by RBI under various Acts, including banking issues and foreign exchange transactions, the central bank provided direction for issue and pricing of shares by private sector banks. The scope of master direction on mergers will cover “an amalgamation of two banking companies and amalgamation of an NBFC with a banking company”. In both the cases, the voluntary amalgamation will become effective after RBI's approval. According to the direction, the decision of amalgamation should be approved by respective boards by two-thirds majority and not just by members present and voting. Also the draft scheme of amalgamation should have approval of shareholders of each banking company by a resolu...

The Narendra Modi government may sound positive about passage of the bill to introduce the goods and services tax in the second part of the budget session of Parliament. However, the arithmetic in the Upper House shows that the BJPled National Democratic Alliance won't be able to get the 122nd Constitution Amendment Bill passed without support from the opposition Congress party even after August, by when 30% of the seats will be filled with new members. The Congress has once again made it clear that it will not support the proposed legislation in its present form, sticking firmly to its demand for three changes.Congress spokesperson Randeep Surjewala reiterated the party's stand on Wednesday and clarified that the government had not reached out to t h e m s i n c e Parliament went into a recess on March 16. Parliamentary Affairs Minister M Ve n k a i a h ains the GST bill Naidu maintains the GST bill will be passed in the second half of budget session even as other mini...

The Reserve Bank of India (RBI) has reduced the list of companies whose loans have to be provided for by banks to cover against the risk of default. This will ease the pressure on banks and improve their balance sheets. According to people familiar with the development, about 20 select loan accounts have been kept aside, implying that banks will not have to provide for these accounts under the asset quality review (AQR) exercise initiated by the RBI in December. While the RBI did not respond to a query on this issue by HT, a senior official of a large public sector bank (PSB) confirmed the move, saying the steps taken by the 20 companies to reduce their debt has prodded the central bank to make this relaxation. It is learnt that the RBI told heads of banks in a late April 20 communication that they will not have to provide for the outstanding loans of the 20 firms in the March quarter. Infrastructure major Jaiprakash Associates and Coastal Energen were among the 20 NPA accounts...