Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: cpt :: form 3cd :: due date for vat payment :: TDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: empanelment
 
 
General »
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months
 Here’s how self-employed should efile their taxes
 Advance tax given by individuals in June quarter rises more than 40%

FIIs can invest up to $5 billion in infrastructure bonds
September, 13th 2011

The government has liberalised the regime for foreign investment in infrastructure bonds to step up the availability of funds for the sector that needs over $1 trillion in the 12th Five-Year Plan beginning Ap ril 2012.

Foreign institutional investors (FIIs) will now be able to invest up to $5 billion in infrastructure bonds having residual maturity of one year at the time of purchase and initial maturity of five years or more, a finance ministry release said on Monday.

The earlier regime restricted FII investment in infrastructure debt to listed and unlisted bonds that had a minimum residual maturity of five years. Besides, the investment was locked in for three years from the date of purchase. The lock-in period has also been reduced to one year and FIIs. Foreign investors would also be allowed to trade among themselves even in this one-year lock-in period but not sell to domestic investors.

The government will review the response to the amended scheme and could further raise the limit of $5 billion. "We will see how the new scheme works now...A review would be carried out in sometime," said a finance ministry official. The move comes following the ministry's consultations with the industry and other stakeholders and a detailed review of the scheme and FII response to it so far.

FIIs have remained lukewarm to this much-hyped scheme that was announced in the budget 2011-12. The government had raised the limit for FII investment in long-term corporate bonds issued by companies in the infrastructure sector from $5 billion to $25 billion to open new channels of funding for the infrastructure sector and also facilitate the emergence of a vibrant corporate bond market. As on August 31, 2011, investments by FIIs under this scheme were only $109 million, or Rs 500 crore, against a ceiling limit of $25 billion or Rs 1,12,095 crore.

"The government has been monitoring FIIs subscription under the scheme and it was observed that additional steps would have to be taken to increase the level of subscription by FIIs," the official said. He said it was concluded that the three-year lock-in period and doubts regarding the interpretation of the requirement of residual maturity of five years were discouraging FIIs from investing in this scheme.

"In order to make this scheme attractive to FIIs, the scheme has been modified in consultation with RBI and Sebi," the ministry statement said. The $5-billion investment allowed in shorter residual maturity bonds is a carve-out within the overall limit of $25 billion.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions