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However, analysts say that in spite of many successful exits recently, the going would be tough for fresh
fundraising and only about a quarter of the estimated amount would make it from the drawing boards.
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In the News:
Foreign direct investment norms for Indians relaxed
The Reserve Bank of India (RBI) on Wednesday announced a slew of revisions aimed at liberalizing the
norms for direct investment abroad by Indian residents. These include liberalization in regulations on
qualification shares, professional services rendered and Esop (employee stock option plan) schemes.
The central bank has removed the cap of one per cent on resident individuals acquiring qualification
shares for holding the post of a director in a foreign company. “Accordingly, remittance shall be allowed
from resident individuals for acquiring the qualification shares for holding the post of a director in a
foreign company to the extent prescribed in the law of the host country where it is located,” said the RBI
notification.
It has also decided to grant general permission to resident individuals to acquire shares of a foreign
entity in part or full consideration for professional services rendered to the foreign company or in lieu of
a director’s remuneration.
And, Indian resident employees or directors have been permitted to accept shares offered under an
Esop scheme globally, on a uniform basis, in a foreign company irrespective of the percentage of the
direct or indirect equity stake. Earlier, the facility was subject to equity holding of not less than 51 per
cent.
However, shares under the Esop scheme should be offered by the issuing company globally on a uniform
basis and the annual return filed by the Indian company to RBI through the authorized dealer category- I
bank, giving details of remittances and beneficiaries.
RBI also announced several modifications to ease the process of direct investments abroad. “It has been
decided that issuance of personal guarantee by the promoters of the Indian party as presently allowed
under the general permission shall also be extended to the indirect resident individual promoters of the
Indian party, with the same stipulations as in the case of personal guarantee by the direct promoters,” it
said.
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Indian-American journalist wins White House Correspondents journalism award
Indian—American journalist Manu Raju, 32, is one of the winners of the White House Correspondents
Journalism Award for 2012. Raju was named the winner of the Merriman Smith Award for Excellence in
Presidential Coverage under pressure in the print category along with colleagues Glenn Thrush, Carrie
Budoff Brown and John Bresnahan at Politico, an influential Washington news site focusing on
presidential politics.