RBI to Introduce a Single Master Form for Reporting all Foreign Investments
The Reserve Bank of India (“RBI”) has via a circular dated June 07, 2018 notified the upcoming introduction of a Single Master Form (“SMF”) for reporting various types of foreign investment in India. The SMF would provide a facility for reporting total foreign investment in an Indian entity, as also investment by individuals resident outside India in an investment vehicle. Prior to the implementation of the SMF, the RBI would provide an interface to the Indian entities from June 28, 2018 to July 12, 2018, to input the data on total foreign investment in a specified format. Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be held in violation of the Foreign Exchange Management Act, 1999 and regulations made thereunder.
Small Shareholders Move SEBI Against IBC Delisting Norms
Minority shareholders have moved the Securities and Exchange Board of India (“SEBI”) regarding their discontent over the lenient delisting process for companies facing insolvency proceedings under the most recent amendment ordinance of the Insolvency and Bankruptcy Code, promulgated by the President. It has been reported that several investor protection bodies have written to SEBI for a review of the norms, which they claim degrade the rights of minority shareholders by forcing them to tender their shares for much lower rates than fair market value.