Author Archive
Investment by overseas Indians made easier
New Delhi, May 21: The Cabinet on Thursday decided to relax foreign direct investment (FDI) norms for NRIs, treating non-repatriable investments made by them on a par with domestic funding. As a result, NRI investments will now not be treated as FDI and will be exempted from sectoral restrictions, limits and approvals.
The Union Cabinet, chaired by Prime Minister, Narendra Modi, had approved amendments, including changes in definition of NRIs, to be incorporated in the FDI policy. The Cabinet has given its “approval to review of FDI policy on investments by Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs),” the statement said. Investments by NRIs under Schedule 4 of FEMA Regulations will now be deemed to be domestic investment at par with the investment made by residents, an official statement said.
As per the earlier FDI policy, definition of NRIs included PIOs, and OCIs were not specifically mentioned. “The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the FDI policy with the stated policy of the Government to provide PIOs and OCIs parity with NRIs in respect of economic, financial and educational fields,” it said.
After the launch of ‘Make in India’, the government embarked upon a number of initiatives on ease of doing business. The Cabinet’s decision is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country, it added.
Advantage to Indian diaspora: PIO & OCI schemes merged via ordinance
An ordinance has been passed amending the Indian Citizenship Act to merge the Person of Indian Origin (PIO) and Overseas Citizenship of India (OCI) schemes. The amendment came into force end of last year based upon Prime Minister, Mr. Narendra Modi address to the Indian diaspora on his visit to the USA.
The decision to amend the Citizenship Act, 1955, was taken after several complaints were received from PIOs, whose major gripes were visits to the local police stations and stringent visa norms that debarred them from buying property in India, in comparison to those holding an OCI card. Requests and representations from a large number of Indian diaspora living in the US, Canada, Australia, and different parts of the world led the government to take a stand on the issue of merging the PIO and OCI schemes.
The PIO and OCI scheme will be merged and the combined scheme will be called as the “Indian Overseas Cardholder”.The merging of the scheme aims at enhancing networking and reinforcing commercial linkages.
This has come as a relief to the millions of PIOs, who often visited India, but had to face reporting and other issues compared to those who came under the OCI scheme. The OCI scheme was more popular, since it provided a lifelong visa and the process for obtaining the OCI card was more user-friendly, quick and simple.
Some salient features of the PIO and OCI merging scheme are:
- The Citizenship (Amendment) Ordinance, 2015, will help PIOs to get lifelong visas and exemption from appearing before the local police station on every visit to India.
- The Citizenship (Amendment) Ordinance, 2015, promulgated, will also do away with the clause requiring foreigners who marry Indians to continuously stay in India for one year before getting Indian citizenship. They will now be able to travel outside the country for up to 30 days in a year.
- It enables the registration as OCI by a foreign spouse of an Indian citizen or such spouses of an OCI cardholder, provided their marriage has been registered and has subsisted for not less than 2 years immediately preceding the presentation of the citizenship application.
- It also allows a minor child born to Indian citizens to be registered as an OCI. Besides providing for registration of a minor, whose parents are Indian citizens as an OCI, the ordinance also paves the way for registration as an OCI by a child or a grand-child or a great grandchild of such a citizen.
We, at SMA Legal, welcome this initiative of the Indian Government at understanding issues which make it easier for PIO’s to visit their motherland without any unnecessary obstacles to their entry. We strongly feel more such initiatives, which bring the Indian diaspora closer to India, are needed.
India launches e-visa facility for 43 nations
Indian tourism industry will never be the same again. In a move which will give a major boost to the tourism sector, the Government launched the much-awaited electronic visa facility for visitors from 43 countries including US, Japan, Germany and Israel.
This move has been taken to overcome the difficulties witnessed in the implementation of the earlier system of visa-on-arrival facility which was available only for a few countries including South Korea, Japan, Finland, Singapore, New Zealand, Indonesia, Myanmar, Vietnam and Laos.
Now, a visitor from these 43 countries will just have to apply for an e-visa on the designated website and pay the fee of $60 online to get an electronic travel authorisation (ETA) within 96 hours via email. All that is needed is a valid passport and a photograph.
Russia, Ukraine, Brazil, Cambodia, Palestine, UAE, Jordan, Kenya, Fiji, Finland, Australia, South Korea, Singapore, Mauritius, Mexico, Norway, Oman and Philippines are among the countries which have got the e-visa facility in the first phase.
E-visa will be valid for 30 days and a tourist can avail the facility twice a year.
Congratulating all those involved in the launching of e-visa system, Tourism Minister Mahesh Sharma said, “This is a historic day for tourism sector. The facility has opened the country to a vast world.”
Barring a few in the “high-risk list” like Pakistan, Sudan, Afghanistan, Iran, Iraq, Nigeria, Sri Lanka and Somalia, all the countries will be covered under the e-visa regime in phases, the official said.
With the launch, the e-visa facility has become operational at nine international airports – Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Kochi, Thiruvananthapuram and Goa. Those traveling on leisure, short duration medical treatment, casual business visit or to meet friends and relatives will be eligible to apply.
“We are formulating a legal framework for this. We will ensure safety and security for all tourists,” Home Minister Rajnath Singh said after launching the e-visa facility in New Delhi, taking into note the security risk involved in the process.
Source: http://economictimes.indiatimes.com/nri/visa-and-immigration
NRIs feel alienated: British MP
Virendra Sharma, a Labour Party MP in the UK, said Punjab could not attract any NRI investment in the last few years owing to “poor” law and order situation in the state. He alleged the NRIs were insecure about their life and property in Punjab. Talking to the media here, Sharma said the state government had “failed” to get property matters of NRIs resolved. “There is a dire need for the government to reconnect its lost association with the NRIs to strengthen the state’s economy.
Prime Minister Modi’s Visa reforms brings cheer to the NRI community
Prime Minister Narendar Modi’s recent announcement in New York of merging the OCI/ PIO services has acted as a blessing in disguise for non-residents Indians (NRIs). Prime Minister Modi’s initiative to improve India’s governance aims to have an inclusive growth model which includes all stake holders including the ever growing NRI community. The PIO/OCI schemes have been of benefit in the past to NRI’s and with an aim to further involve them in India’s growth story, these new announcements seem to be relevant.
As per the recent announcement by Mr. Modi, Person of Indian Origin (PIO) cardholders would be eligible to get lifelong visa benefits to India without repeated renewal or applying afresh for a Visa. This initiative is not only for the PIO/OCI card holders but aims at a larger transformation of the India Visa regime. These winds of change will, in addition to the benefits for the PIO/OCI card holders, also effect foreign nationals. Those foreign nationals, who are on long visits to India, would no longer have to get their police verification check on frequent basis. Such police verifications often tended to be time consuming and harassingwithout really serving any meaningful purpose.
The unification of the existing different schemes for PIO and OCI schemes along with those for foreign nationals would enable them to have a carefree stay in India for longer periods, allowing them to have a better established connect with India without any inconvenience. Furthermore, it would give an indirect boost to the economy and the tourism industry.
PIO card holders include all those Indians, who have attained dual citizenship and have been staying abroad for the past 10 or 20 years. Whereas, the OCI cards are being issued to all those individuals, who have recently migrated abroad and have attained the citizenship of another country (other than India).
IR Event at London – Changing Perspectives
Mr. Shantanu Mohan Puri, the Managing Partner of SMA Legal, is going to be in London from the 17th-27th of September during which he will be attending the event hosted by International Referral (IR), the world’s largest group of advisers featured exclusively by practice area expertise. The event is a platform offered by IR to its members to meet up and expand their networks with high level professionals around the world. During the event, Mr. Puri, who is the sole Banking and Finance member from India, is meeting individuals and firm representatives who do cross border work and have a keen interest in India. Mr. Puri’s reputation and interest in assisting the Indian Diaspora in the United Kingdom is well known. As part of this continuous process, Mr. Puri is also meeting industry representatives and lawyers from around the world who have clients in:
-Defence manufacturing
-Renewable energy
-Real estate
-Financial services (especially debt financing)
-Infrastructure
-Retail and Healthcare.
The event with the tagline “Changing perspectives”, is the IR’s take on a creative ‘street’ themeand intends to promote international collaboration and networking among the world’s leading professionals. The event will be held from 21st-23rd September at the Mayfair Hotel, London.
SMA LEGAL invited again by IR for an event in Dubai on 30th April and the 1st of May 2014
SMA Legal has been invited by International Referral (IR) to take part in its prestigious event called ‘On the Road’ which will be held on 30th April – 1st May 2014 at the Address Dubai a 5 star hotel in the Dubai Marina area.
This event will emphasize on relationship development, building trust and sharing opportunities for collaboration between law firms. It will be a fantastic opportunity to build stronger connections and share ideas amongst like minded legal professionals and law practices. The event intends to create fantastic prospects for IR attendees who are wishing to grow their business and promises to be an intellectually brilliant, positively meant and challenging event. Like previous events, this event too will give the chance to bring together professionals by practice area expertise or jurisdictional coverage.
Embracing Asia conference – by UBS on 29th October 2013
UBS is a client-focused financial services company that offers a combination of wealth management, asset management and investment banking services on a global and regional basis. As one of the world’s premier advisory – it provides clients with expert advice, innovative solutions, outstanding execution and comprehensive access to the world’s capital markets. Whether clients require investment, banking, equities, fixed income or foreign exchange services, it has the global strength and industry experience to meet the needs. Every day, UBS uses its’ intelligence, market insight and global coverage to help the client to capture opportunities and manage risk.
UBS has been hosting the Embracing Asia conference for the past six years, designed to introduce private European investors and entrepreneurs to their Asian counterparts in order to foster mutual learning and potential partnerships.
This year, guests from Europe traveled to India to examine the Asian growth story. The guests were from the automotive, dairy products, health care, private equity, machinery, food production, finance and banking sectors.
Experts and entrepreneurs were invited by UBS to share their insights and expertise in a conference, which took place on 29th October 2013 at Leela Palace, New Delhi. The conference began with a panel discussion on the topic of “Challenges of Entrepreneurship in India” where panelists spoke about their best practices, strategies, and challenges they faced when building up their business empire in India. Speakers talked about ‘What do companies need to know about establishing a local presence in India? They mentioned that despite inflationary pressure, India has retained its rapid-growth potential, attracting international companies seeking to profit from the local market environment. They shared their experiences about the ways to identify the key barriers and scale-up challenges. Experts shared their ideas – how to seize new opportunities and forge strategic partnerships to drive change and evolve- to become indispensable leaders in the world.
SMA Legal as a Legal Advisory firm, was invited by Mr. Matrin Stadler from UBS Wealth Management Services for Ultra High Net Worth individuals from Austria, Germany and Switzerland, to attend this exclusive networking opportunity in 2013 where a large number of willing investors were present.UBS appreciated the participation of Mr. Shantanu Mohan Puri, Managing Partner, SMA legal as a speaker in the conference. He was invited there to deliver a talk on the topic “Doing business in India- Challenges and Chances”. Mr. Puri shared his legal views on “investment policy and solutions” as well as addressed concerns and questions of the participants and guests. He was especially there to talk about the latest regulatory, commercial and technology law issues, which can be faced by emerging industries in India. He was the only Indian lawyer invited by UBS as a Speaker.
SMA LEGAL advises on ADOPTION & SURROGACY
SMA Legal was requested by a southern European mission in New Delhi to furnish the information regarding ADOPTION and SURROGACY procedures followed in India. SMA Legal has been actively engaged by Non Resident Indians and foreign nationals from time to time to assist them in both these areas.
On the request of the foreign mission SMA Legal acted with diligence and gathered all necessary information on the topics including the current Indian Laws on both.
Within a very short time SMA Legal responded to the queries put forward by the Embassy, to the best of its legal knowledge. The Legal Opinion prepared by SMA Legal explained about the governing laws pertaining to Adoption and Surrogacy in India.
It was stated that the following acts govern the laws pertaining to Adoption:
- Hindu Adoption and Maintenance Act, 1956
- Guardians and Wards Act, 1890
- Juvenile Justice ( Care and Protection of Children) Act, 2000 (JJA)
Furthermore, the practical process and rules for adoption are laid under The Guidelines Governing the Adoption of Children, 2011 which was made in pursuance to India joining the Hague convention on Inter-country adoption in 2003. Under this, even foreign nationals can now adopt.
Similarly, in brief the issue of SURROGACY was also discussed. Due to successive cases coming up before Indian courts, the law on Surrogacy has greatly evolved. However it all started after the MANJI CASE in 2002 that gave recognition to the concept of Surrogacy and allowed for Commercial Surrogacy in India.
However till date there are no definite law regulating Surrogacy in India. The Indian Council of Medical Research (ICMR) made guidelines in 2005 which deal with this issue. Assisted Reproductive Technology (regulation) Bill, 2010 is the long awaited step towards the regulation of surrogacy in India. Parliament of India is still in the process of finalising the bill.
SMA Legal continues to assist clients in both areas i.e. Adoption and Surrogacy. These matters are handled by a well experienced team which can be contacted at [email protected] with the topic mentioned in the subject heading of the email.
SMA LEGAL attends the India Symposium, 2013 in Zurich
India Symposium, is an annually recurring conference which aims at fostering economic and social relations between India and Europe.India Symposium, 2013 was the world’s most important gathering of CEOs, MDs, President’s, Chairman’s, Founder’s and Director’s as speakers from world’s largest and prestigious companies.
The conference was organized on September 27th 2013 at Zurich and was focused on the topic “A Global market overview and opportunities in India”. SMA Legal was invited to this prestigious conference which was attended by the “whose who” of Indian, German, Swiss and Austrian industry.
The Introductory and special speech was delivered by Dr. Sigu Muringaseril, Founder & Chairman, India Symposium and H.E. Dr. Linus von Castelmur, Ambassador of Switzerland to India, Embassy of Switzerland.
Some of the other speakers included
· Lord Baron Karan Bilimoria, Founder & Chairman, Cobra Beer
· Ashish Chauhan, Managing Director & CEO, Bombay Stock Exchange
· Dr. Karl-Ulrich Köhler, Managing Director & CEO, Tata Steel Europe
· Namrata Kaul, Managing Director, Deutsche Bank
· Rajesh Nambiar, General Manager, IBM
· David Ross, SVP Operations – ME, India and Africa, FedEx
· Sumeet Aggarwal, General Manager, Office of the Executive Chairman, Fortis Healthcare
· Sutanu Sinha, Chief Executive, Institute of Company Secretaries of India
· Vikas Anand, Chief Operating Officer, DHL Supply Chain – India
· Ramkumar Narayanan, General Manager & Head PDCi, eBay India
· Ashish Arondekar, Head of Banking & Financial Services, Cognizant Switzerland
· Pramod Arora, Group President, PVR Cinemas
This one-day conference comprised of presentations, panel discussions and analyst sessions. The day was designed to understand the various challenges at the micro economy and corporate level in India as well as in Europe. Attendees discovered what needs to be done by the corporate sectors in social development such as gender equality, work life balance and changing the value system.
The sessions were on ‘National and Translation Issues’, ‘Banking, Financial Services & Insurance’, ‘Lack of and Inefficiencies in Infrastructure which Impede Growth’, Knowledge & New Economics, ‘Cost Effective Health Care Delivery in India’ and ‘Engineering Manufacturing’. A detailed discussion was held on the difficulties and complexities for foreign companies to get success in the Indian market. Speakers spoke, precisely and candidly, on the topic of the actual state and current trends in the Indian financial services and corporate sectors.
The next India Symposium is slated for the 26th of September 2014 in Zurich.
