LexFavious in their NewsLetter discuss about the Master Directions on Direct Investment by Residents in Joint Venture (JV)/ Wholly Owned subsidiaries (WOS) abroad by Reserve bank of India vide press release dated January 01, 2018. Various instructions issued on Direct Investment by Residents in Joint Venture /Wholly Owned subsidiaries abroad have been complied with in the so released Master Directions.
These directions lay down the modalities as to how the foreign exchange business has to be conducted by the authorized persons with their customers/constituents with a view to implementing the regulations framed. The Master Directions also contain a list of underlying circulars/ notifications which form the basis of this Master Direction, furnished in the appendix to the same. Reporting instructions can be found in Master Direction on Reporting (Master Direction No. 18 dated January 01, 2016). Broadly, the framework of the Master Directions is structured to provide guidance on the subject of Direct Investment (Or Financial Commitment) Outside India, Other Investments In Foreign Securities, and Operational Instructions To Authorised Dealer Banks.
The entire text of the Master Directions can be accessed on the online portal of the RBI. The Securities and Exchange Board of India (“SEBI”) eases e-book mechanisms for Issuance of Securities on Private Placement basis The Securities and Exchange Board of India, vide Circular dated January 05, 2018, has issued new revisions to the existing framework for electronic book mechanism for issuance of securities on Private Placement basis, thus easing the process for all stakeholders. SEBI vide Circular dated April 21, 2016, had mandated the usage of electronic book mechanism for issuance of debt securities on private placement basis.
Subsequently, on receiving feedback from the market participants to further streamline the process, and it has accordingly made suitable revisions to the existing framework. The revisions made to the existing framework are aimed at further streamlining the procedure for private placement of debt securities, allowing private placement of other classes of securities which are in the nature of debt securities and enhancing transparency in the issuance, resulting in better discovery of price. The revised guidelines are placed at Schedule – A annexed to the circular dated January 05, 2018, and can be accessed on the online portal of SEBI. The same shall come in to force with effect from April 01, 2018.