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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« General »
 The Central Board of Direct Taxes unveiled new Income Tax Return forms for assessment year 2018-19 on 5 April. Although the manner of filing returns remains the same as compared to last year, certain changes have been incorporated in the new ITR forms.
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes
 Here’s all you should know about filing Income Tax Return before March 31
 Tax benefits continue to accrue even after PPF a/c is transferred to another bank
 When you may have to visit income tax department’s compliance portal

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 2018 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