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Short-term fluctuations, including net FDI outflows and exchange rate movements, are cyclical in nature and are being closely monitored, RBI Governor Sanjay Malhotra said. He was speaking at a round-table hosted by Consulate General of India in New York on Monday. A press release was issued the next day. Malhotra highlighted the ongoing reforms to simplify regulatory frameworks, enhance ease of doing business, expand market access for foreign investors, and further integrate onshore and offshore markets. The round-table was attended by over 100 representatives from financial institutions, investment firms and policy circles, including participants from banks, asset management firms, family offices, capital management firms, institutional investors, wealth managers, and other industry professionals. During the session, RBI Chief General Manager Dimple Bhandia gave a presentation, highlighting the country's strong macroeconomic fundamentals, resilient financial sector, and consistent
Net sales growth of the select FDI companies moderated to 8.7 per cent in 2024-25 from 9.4 per cent in the previous year, according to the RBI data on finances of foreign direct investment firms. The central bank on Wednesday released the data relating to the financial performance of non-government non-financial (NGNF) foreign direct investment (FDI) companies in India during 2024-25 based on audited annual accounts of 3,100 companies, which reported in the Indian Accounting Standards (Ind-AS) format. "Industry wise, net sales growth of services sector marginally increased to 12.7 per cent from 12.2 per cent in the previous year, while for manufacturing sector it decelerated to 5.1 per cent from 6.8 per cent in the previous year," the RBI said. Companies with direct investment from Singapore, the US and Mauritius accounted for more than half of the sample companies. Japan, the Netherlands and the UK were other major direct investment sources in India. Majority of the sample compani
The amendments to the 'Press Note 3' by the government will help China increase its share in the overall foreign direct investments attracted by India to 2 per cent levels, a report said on Monday. "The change in the rule is expected to increase the share of Chinese funds in overall FDI to more than 2 per cent, the level it stood at before the Press Note 3," the report by Crisil Intelligence said. Between calendar years 2014 and 2019, cumulative FDI inflows from China, including Hong Kong, accounted for about 2 per cent of total FDI, which contracted to 0.27 per cent after the introduction of new rules in Press Note 3. Easing of Press Note 3 norms is expected to unlock a pipeline of pending proposals, potentially driving a near-term uptick in inflows from China, including Hong Kong, it said. The entity expects the government move to accelerate FDI inflows into India, strengthening its domestic capabilities and reducing reliance on imports. The government first introduced the rules
India is working to create an indigenous Virtual Asset Lab for detection of unregistered, high-risk offshore virtual asset service providers (oVASPs) by using analytics and web surveillance tools. A Financial Action Task Force (FATF) report, titled 'Understanding and mitigating the risks of offshore virtual asset service providers', gave case studies of India and other countries on how oVASPS are being used for money laundering and supervision being done by the nations. According to the FATF report, some jurisdictions have established structured cooperation with internet service providers, app-store operators and online platforms to disrupt unauthorised oVASPs activity. Giving a case study from India, the FATF report said that FIU-India, along with the Home Ministry, has directed intermediaries (social media platforms, web hosts, internet service providers) to take down website content. "So far, 85 URLs pertaining to unregistered non-compliant oVASPs have been taken down," it ...
Overseas companies having Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors; however, the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India, a senior official said on Wednesday. Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector. The Union Cabinet on March 10 made changes in the press note 3 of 2020 in this regard. Under the press note, investors from countries sharing land borders with India had to seek mandatory approval to invest in any sector. "All the restrictions for investors from land bordering countries (LBCs) are still applicable. There is no relaxation so far as entities or investors in LBCs are concerned. This relaxation is only for entities in non-LBCs and having beneficial owners from LBCs below 10 per cent and ...