Regulations
RBI allows NRIs to pick-up shares, debentures at face value

RBI said NRIs can invest in an Indian company at the face value of shares or debentures subject to compliance with FDI scheme

 
Mumbai: The Reserve Bank of India (RBI) has said non-residents, including non-resident Indians (NRIs) can make investment in an Indian company at the face value of shares or debentures subject to compliance with foreign direct investment (FDI) scheme, reports PTI.
 
"It has been decided that in cases, where non-residents (including NRIs) make investment in an Indian company in compliance with the provisions of the Companies Act..., such investments may be made at the face value subject to their eligibility to invest under the FDI scheme," RBI said in a circular.
 
As per the existing norms, non-residents are allowed to purchase shares or convertible debentures of an Indian company up to the extent and subject to terms and conditions set out under the FDI scheme.
 
Moreover, a person purchasing shares proposes to be collaborator or proposes to acquire the entire share holding of a new Indian company is required to obtain prior permission of the government if he has a previous venture or tie-up in India through investment in shares or debentures.
 
It also requires that the price of shares issued to persons resident outside India under this scheme shall not be less than the price worked out in accordance with the SEBI guidelines, if the issuing company is listed on any recognised stock exchange in India.
 
And fair valuation of shares should be done by a chartered accountant as per the guidelines issued by the Controller of Capital Issues, in all other cases, as per RBI.
 

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JM Financial sells its entire stake in Max India for Rs100 crore

JM Financial Products sold its entire 1.99% stake to Dynavest India, one of the promoter group firms of Max India, for an average price of Rs189 per share


Mumbai: Non-banking finance company JM Financial Products Ltd, has offloaded its entire stake of around 2% in Max India for nearly Rs100 crore through open market transactions, reports PTI.

 

JM Financial Products, which held 52.90 lakh shares or 1.99% stake in Max India at the end of June quarter, sold its entire stake in the diversified business house, according to bulk data available with stock exchanges.

 

The shares were sold to Dynavest India, one of the promoter group firms of Max India, on an average price of Rs189 taking the deal size to Rs 99.98 crore, it added.

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Indian Bank launches prepaid travel, gift cards

Indian Bank planning to sell one lakh prepaid travel cards and two lakh gift cards by the end of this fiscal


Chennai: State-run lender Indian Bank has launched gift and travel cards in partnership with MasterCard, reports PTI.

 

"We are launching two new prepaid card solutions for our customers. These days, carrying cash is biggest risk. Earlier, international traveller’s cheques were handy. But the latest is the travel card," Indian Bank Chairman and Managing Director TM Bhasin said.

 

He said the bank has planned to sell one lakh travel cards and two lakh gift cards by the end of this fiscal.

 

He said the launch of travel and gift cards follow the success of the Platinum Debit cards that were launched by the Chennai-based bank last year.

 

The prepaid gift cards are currently available in denominations of Rs1,000 and Rs5,000 and can be bought at no additional charge, while the travel cards issued in US Dollars come with an initial load of $200, Indian Bank General Manager GN Hegde said.

 

"We have planned to launch general purpose gift cards and multi-currency debit cards in the next few months", he said.

 

The prepaid gift cards would be initially available in select branches of the bank, he added.

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