CCEA gave its nod on the conditions that, among other things, Jet and Etihad would adhere to RBI policy guidelines and SEBI regulations, comply with all Indian laws and take prior FIPB approvals for any further changes in the shareholders agreement.
Tata Group's move to set up a full service airline in collaboration with Singapore Airlines (SIA) will be good for consumers as well as the industry, say Finance Ministry officials.
A government note is in all probability going to reiterate that when the government hiked the foreign direct investment (FDI) cap in aviation to 49 percent, it was not just meant for existing carriers but other airlines as well, reports CNBC-TV18‘s Ronojoy Banerjee.
The two partners have also listed out a number of other economic benefits for the country from their new venture, Tata SIA Airlines Ltd, where Tata Sons would hold 51 percent stake and Singapore Airlines (SIA) 49 percent.
According to top sources the Department of Economic Affairs (DEA) had written to Jet and Etihad on September 5 seeking submission of documents relating to the revised shareholder agreement, corporate governance code, commercial cooperation agreement and the Articles of Association.
According to sources, the board also approved Shanta Biotech's FDI proposal worth Rs 755 crore; with that Sanofi will now hold 100 percent stake in Shanta Biotech.
The Tata‘s will hold 51 percent and Singapore Airlines will get 49 percent. But the deal may face regulatory turbulence as Tata's also hold 30 percent in a joint venture (JV) with Air Asia India reports CNBC-TV18‘s Ronojoy Banerjee and Animesh Das.
The foreign investment promotion board (FIPB) cleared Shanta Biotech's proposal to increase foreign investment in the company to 100 percent.
The bench of Chief Justice N V Ramana and Justice Pradeep Nandrajog issued notices to the Centre, Foreign Investment Promotion Board (FIPB) and Commerce and Civil Aviation ministries and sought their responses by October 30.
Federal bank in previous month had filed an application with FIPB to raise foreign holding limit in the bank to 65 percent after it crossed its current foreign holding limit of 49 percent.
Axis Bank had approached the FIPB last month soon after the RBI said the limit of investments through GDRs, ADRs, FDI, NRI, FIIs in the bank had breached the overall limit of 49 percent of its paid-up capital. HCL Tech has also approached the FIPB to seek nod for induction of foreign funds.
The proposal of Jet Airways India, amounting to Rs 2,057.66 crore, has been recommended for consideration of the Cabinet Committee on Economic Affairs. Jet Airways proposes to sell a 24 per cent stake to Abu Dhabi-based Etihad Airways.
Since the Mylan's investment proposal is of over Rs 1,200 crore, it will go to the Cabinet Committee on Economic Affairs for final approval.
The Foreign Investment Promotion Board (FIPB) has cleared all the brownfield pharma proposals in its meeting today. Among the investments cleared is Mylan's USD 1.8 billion acquisition of Strides Arcolab.
According to the notification by DIPP, upto 49 percent FDI in telecom is allowed under the automatic route. Investments beyond 49 percent will be allowed only with approval from the FIPB. This approval is subject to fulfillment of licensing and security conditions, which will be notified by the department of telecom
Earlier, the government had relaxed the FDI cap in defence from the current 26 percent but only on a case-to-case basis. After the FIPB nod the proposal will need the consent of the Cabinet Committee on Security. The defence ministry is agreeable to FIPB's initial vetting.
The move has been necessitated because of the Reserve Bank's August 20 press release prohibiting foreign institutional investors, non resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding has crossed 49 percent.
The foreign shareholding as on June 30, 2013, was 48.96 percent which included investments through the FDI route in the form of GDRs of 8.08 percent and other foreign holdings, including FIIs of 40.88 percent, Axis Bank said in the release.
The Government has cleared 12 FDI proposals worth Rs 343 crore and kept on hold the decision on US-based Mylan Inc's proposal to acquire an Indian pharma company.
After sailing through the government's foreign investment approval body FIPB with some riders, the Rs 2,058-crore deal between Jet Airways and Etihad will be knocking on the doors of capital markets regulator Sebi and fair trade watchdog CCI this week.
Jet Airways and UAE-based Etihad Airways, which received a green nod from Foreign Investment Promotion Board (FIPB) for stake sale deal, have accepted the riders laid by the government body, reports Kritika Saxena of CNBC-TV18.
The Foreign Investment Promotion Board (FIPB) on Monday cleared six proposals envisaging investments of Rs 855 crore in the pharmaceutical sector, including Fresenius Kabi.
The Jet-Etihad deal is ready for takeoff as India's largest FDI investment in aviation has been given the green signal by the foreign investment promotion board. The nod has been given with 4 conditions and if both the airlines agree to it then the deal will be taken up by the cabinet.
The Foreign Investment Promotion Board has cleared the much awaited Jet-Etihad deal, but with riders, say sources. Jet Air is likely to get Rs 2058 by offloading 24 percent stake to Etihad.
On June 13, FIPB had deferred its decision with respect to the deal owing to lack of clarity with respect to the ownership structure of the company and also the effective control that Etihad would get post the deal is completed.