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Government Hikes FDI Cap In Pension Sector to 49 per cent

The government has notified an increase in the cap on Foreign Direct Investment (FDI) in the pension sector to 49 per cent from 26 per cent. This step will pave way for more foreign funds, to enter the national pension system. The increase in FDI cap for pension is in sync with the recent passage of the Insurance Laws (Amendment) Bill in Parliament, which allows a higher, 49 per cent foreign investment limit in the insurance sector. The cap on foreign investment is composite and includes FDI, Foreign Portfolio Investments (FPI) and investments from NRIs, according to a press note released by the Department of Industrial Policy & Promotion (DIPP), on Monday. While FDI up to 26 per cent will be allowed through the automatic route, investments above that have to be routed through the Foreign Investment Promotion Board (FIPB). The Pension Fund Regulatory and Development Authority (PFRDA), 2013, pegs FDI in the pension sector at 26 per cent or such percentage as approved for the insurance sector, whichever is higher. The increase in the foreign investment limit in the pension sector comes with certain riders. The notification reads “Foreign investment in pension funds will be subjected to the condition that entities bringing in foreign equity investment shall obtain necessary registration from the PFRDA and comply with other requirements as per the PFRDA Act,”.

Shree Cement Acquires Jaypee Cement Unit For Rs. 358 Cr

Shree Cement has completed the acquisition of a cement grinding unit of Jaiprakash Associates for Rs 358.22 crore. The acquisition constitutes of a 1.5 mtpa cement grinding unit of Jaiprakash Associates Ltd. In August last year, the board of Jaiprakash Associates Ltd had approved the sale of the unit to Shree Cement Ltd. Post acquisition Jaypee Associates continue to be third largest cement manufacturer in the cement industry with production capacity of 29 mtpa, While after this acquisition, the production capacity of Shree Cement has increased to 19 mtpa with facilities in Rajasthan, Bihar, Haryana and Uttarakhand.

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R Com raises USD 300 Mn via Bond Sale

Reliance Communications (RCom) sold 5.5-year dollar debt at 6.5 per cent and mopped up USD 300 million from global investors The Company in last November, hit the market with a bond issue, unfortunately had to withdraw the issue as it could not get good pricing. “The proceeds from the issue will be used for capital expenditure or any other permissible end-use as prescribed by the Reserve Bank,” Moody’s said. From the March auctions, RCom won spectrum at a cost of Rs 4,300 crore, and made an upfront payment of Rs 1,100 crore, thereby increasing its already high debt, which is 4.8 times its equity, making it the most leveraged telco.

Amtek To Acquire Selected Business Of Asahi Tec.

Auto component maker Amtek Auto will acquire iron casting, forging and machining businesses of Asahi Tec Corporation for an undisclosed sum. In a filing to BSE, Amtek Auto (AAL) quoted “They have entered into a share purchase agreement with Japan-based Asahi Tec Corporation to acquire its various group companies, which are engaged in the business of iron casting, forging and machining.” “The acquired companies have various manufacturing facilities in Japan, Thailand and China with long-standing relationships with ‘blue chip’ original equipment manufacturers” the company added.

Foundation Stone Laid For REC World Headquarters

Rajeev Sharma, CMD, REC laid the foundation for the upcoming REC world headquarters building in Gurgaon near IFFCO Chowk Metro Station. It would be a bioclimatic building which will respond to effects of climate conditions on the structure. The total area is 18,580 square metres. REC employees were also present during the foundation stone laying ceremony.

CBDT To Settle FIIs Claims Within One Month

In a significant development, the Central Board of Direct taxes (CBDT) has given a big relief to foreign institutional investors (FII) in terms of exemption from taxes provided in Double Taxation Avoidance Agreements (DTAAs) signed between India and various other countries. CBDT has decided that in all cases of FII seeking treaty benefi ts under the provisions of respective DTAAs, decision will be taken on such claims within one month from the date such a claim is filed. Actually the process has been taking too much time, creating unnecessary hardship to the FIIs. FIIs which receive income from transactions in securities claim such income as exempt from tax under the Income Tax Act by availing benefit provided in DTAAs. As it doesn’t involve any complex issue, CBDT has instructed its official to decide these cases expeditiously.