The Modi government has reiterated that FDI up to 100% is permitted in single brand retail trading and no decision on FDI in multi-brand retail trading has been taken
The Indian government on Friday said it has not taken any decision on permitting foreign direct investment (FDI) in multi-brand retail trading.
Nirmala Sitharaman, minister for commerce and industry, in a written reply to the Lok Sabha, said, "As per the extant FDI policy, FDI up to 100% is permitted in single brand retail trading. No decision on FDI in multi-brand retail trading has been taken".
As per the current policy, 51% FDI is permitted in multi-brand retail trading. When the United Progressive Alliance (UPA)-led government announced the policy, the Bharatiya Janata Party (BJP) had strongly opposed.
Sitharaman, after assuming the office, had indicated that foreign players will not be allowed to open mega stores in the country, saying that FDI in multi-brand retail trade will adversely impact small traders and farmers.
There have been speculations however that the government would not roll back the policy and leave it to the states to implement it.
Till now, British retail major Tesco's plan has been approved by the previous government to enter the sector.
Replying to another question on FDI in e-commerce, the minister said that during April 2000 and April 2014, India has received $37.1 million FDI in the sector.
"As per extant FDI policy, FDI up to 100% under the automatic route is permitted in B2B e-commerce activities. The present policy does not permit retail trading in any form, by means of e-commerce, for companies with FDI engaged in the activity of single/ multi brand retail trading," she said.
SEBI said disclosure with regard to 'disciplinary history' for AIFs would be applicable in those cases, where monetary penalty of more than Rs5 lakh is being levied
Market regulator Securities and Exchange Board of India (SEBI) on Friday revised certain guidelines with regard to 'disciplinary history' of the alternative investment funds (AIFs).
AIFs are basically funds established, or incorporated in India, for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
SEBI said all AIF have to disclose the 'disciplinary history' of the fund, its sponsor, manager, directors, partners, promoters and associates for the last five years.
These funds are required to provide details of pending and past cases (where the person has been found guilty) of litigations, criminal or civil prosecution, disputes and non-payment of statutory dues, among others.
Besides, SEBI said that such disclosure would be applicable in those cases, where monetary penalty of more than Rs5 lakh is being levied.
"With respect to disputed tax liabilities, the same shall not apply to liabilities in personal capacity of an individual. Contingent liabilities shall be as disclosed in books of accounts of the entity," SEBI said in a circular.
Currently, there is no specific time-frame mentioned for disclosing 'disciplinary history' of the fund.
Besides, SEBI has extended the deadline for sending the AIF's placement memorandum, which consists of details of disciplinary actions of the funds till 31st August from 19th July.
Further, the market regulator had said any change in placement memorandum to all would be intimated to investors and to SEBI once every six months on a consolidated basis, as against the current practice of seven days.
Under SEBI guidelines, AIFs can operate broadly in three categories. The SEBI rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.
The Category-I AIFs are those funds that get incentives from the government, SEBI or other regulators and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds.
The Category-III AIFs are those trading with a view to making short-term returns and these AIFs include hedge funds, among others.
The Category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include private equity funds, debt funds or fund of funds, as also all others falling outside the ambit of two other categories.