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Government Approves Eight (8) Proposals of Foreign Direct Investment

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on June 14, 2013, the Government of India has approved eight (8) Proposals of Foreign Direct Investment amounting to Rs. 1311.54 crore approximately.

Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 14.06.2013 are as follows:

Following 8 (Eight) proposals have been approved:

Sl. No.

Name of theapplicant

Particulars of the proposal

FDI/NRIinflows

(Rs. incrore)

1

M/s EuronetServices India Pvt. Ltd. Company having FDI to set up White Label ATMs.

Nil

2

M/s ShaastraSecurities Trading Pvt. Ltd., Gurgaon To make downstream investment in the proposed Wholly Owned Subsidiary to undertake the activity of Commodity broking & trading in the commodity exchanges.

2.87

3

M/s SreiInfrastructure Finance Limited, Kolkata To undertake an additional activity of setting up White Label ATMs (WLAs) in India.

No Fresh Inflow

4

M/s Mahle Holding India Pvt. Ltd. Investing company having 100% FDI proposes to bring in more investment.

280.00

5

M/s AvevaSolutions Limited, UK To set up a LLP to provide software development and IT enabled services.

8.39

6

M/s Flemingo Duty Free Shop Pvt. Ltd. To operate Electronic Duty Free Shop at International Arrival and Departure Terminal at Cochin International Airport and also a Duty Free Shop at APM terminal at Pipavav Port.

Nil

7

Md. Rabiul Alam, Bangladesh To set up a new company in India with 100 percent FDI to carry out the business of production of engineering products.

20.28

8

M/s Telenor Mobile Communication AS, Norway To set up a JV company in telecom sector.

1000.00

The following 10 (Ten) proposals have been deferred:

Sl. No

Name of theapplicant

Particulars of the proposal

1

M/s IndostarCapital Finance Pvt. Ltd., Mumbai A Systemically Important Non-Deposit Taking Non-Banking Financial Company to set up a subsidiary company and sponsor a debt fund under SEBI (AIF) Regulations.

2

M/s MuthootFinance Limited,Kerala Company having FDI to set up White Label ATMs.

3

M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.

4

M/s AU Housing Finance Limited, Jaipur To increase direct and indirect foreign investment up to 95%, without meeting the minimum capitalization norm of USD 50 million. The company is engaged in the business of providing housing loans, primarily in the un-served, unreached and under-served market mainly in low income states of India.

5

M/s SomaTollways Pvt. Ltd. Post facto approval for increase in foreign equity in the investing company.

6

M/s ConradHorler, Karnataka A Foreign citizen (NR) proposes to set up a multimedia LLP.

7

Mr. RamneekSingh, Amritsar To set up an LLP with foreign equity to undertake agri-export business.

8

M/s OctaniaAerostructureGroup Pvt. Ltd., New Delhi To issue equity shares in lieu of technology transfer/know how.

9

M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi Induction of foreign investment upto 49% in an Indian company engaged in Private Security Services.

10

M/s Jet Airways India Ltd. An Indian Air Transport Service sector company to make a preferential allotment of 24% of equity shares to a foreign airline. The foreign airline proposes to subsequently transfer the same to its WoS.

The following 6 (Six) proposals have been rejected:

Sl. No

Name of theapplicant

Particulars of the proposal

1

M/s Alliance Insurance Brokers Private Limited, Mumbai Induction of foreign equity by way of issue and transfer of equity shares to carry out the business of insurance broking.

2

M/s HighdellInvestment Ltd., Mauritius Induction of foreign equity in an investment holding company.

3

M/s NREC Railway Equipments India Private Limited, Delhi Post facto approval for issuance of equity shares against pre-operative expenses borne by the foreign collaborator. The company is engaged in the business of manufacturing locomotives and their parts.

4

M/s Snap Networks Pvt. Ltd., Karnataka Post facto approval for issuance of partly paid up shares to an NRI.  The company is engaged in the business of development of technology with respect to Wireless sound systems.

5

M/s Multi Commodity Exchange of India Pvt. Ltd. Engaged in the business of trading in commodities.

6

M/s MarjanMotors Private Limited, Chennai Post facto approval for allotment of shares against pre incorporation expenses remitted by foreign investor to the third party in India.

The following 2 (Two) proposals have been advised to access automatic route:

Sl. No

Name of theapplicant

Particulars of the proposal

FDI/NRIinflows

(Rs. in crore)

1

M/s Avis India Investments Pvt. Ltd. A foreign owned (WoS) Indian company, engaged in renting or leasing (other than financial leasing) of motor vehicles proposes to increase its stake in a downstream, engaged in the same business, by acquisition of shares from the partner.

17.61

2

M/s DewsoftFabrication Private Limited, New Delhi A defence sector company to transfer 26 % holdings to a foreign company against technology transfer fee payable to the foreign company.

Nil

The following 01 (One) proposal has been withdrawn from the Agenda:

Sl. No

Name of the applicant

1

M/s ICICI Venture Funds Management Company Ltd., Mumbai

In respect of the following 1 (One) proposal, the applicant has been advised to apply for approval:

Sl. No.

Name of the applicant

Particulars of the proposal

1

M/s Cable & Wireless Networks India Pvt. Ltd. Intimation regarding overseas group restructuring in internet infrastructure Company without change in approved FDI/cap/investor.

In respect of the following 1 (One) proposal, the applicant has been advised that part (a) has been rejected and part (b) and (c) would not require post facto approval as the sector is on automatic route:

5

M/s Abicor BinzelProduction (India) Pvt. Ltd., Pune (a) Conversion of overseas loan and interest thereon into share application money in FY 2003-04 and subsequently issuing of 30,000 equity shares of Rs. 1000/- each at par value in month of June 2008.

(b) Post facto approval for transfer from Resident to Non- residents of 36 equity shares of Rs. 1000 each at par during the year 1999 and 2000; and

(c) Post facto approval for issue of 4964 equity shares of ` 1000 each at par value on February 5, 2002 to non-residents.

Decision in case of the following 1 (One) proposal will be communicated separately:

Sl. No.

Name of theapplicant Particulars of the proposal

FDI/NRIinflows

(Rs. incrore)

1

M/s StemcorHoldings Limited An International steel trading group having a majority owned mining and a WoS in manufacturing in India is restructuring its holdings and through a swap of shares proposing to hold its manufacturing activity as a downstream entity of its mining subsidiary.

Nil

 

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