With a view to provide greater flexibility, the Reserve Bank of India (“RBI”) has vide its circular dated 16th November 2006 amended the Foreign Exchange Management (Remittance of Assets) Regulations, 2000 (“Regulation”) by dispensing with the lock in period for remittance of sale proceeds of immovable property of Non-Resident Indians (“NRIs”) or Persons of Indian Origin (“PIOs”) from their Non-Resident Ordinary (“NRO”) accounts in India.

The External Commercial Borrowings (“ECB”) policy has from time to time been reviewed and modified by the Reserve Bank of India (“RBI”) in light of changing economic trends and market conditions.

As provided in Rule 5 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, prior approval of the Reserve Bank of India (RBI) is required for drawing foreign exchange for remittance for purchase of a trademark or franchise in India

At present, Foreign Direct Investment (FDI) up to 49% is permitted in an Indian Joint Venture Company for setting up hardware, Up-linking HUB or Teleports and complying with guidelines of GOI and Ministry of Information and Broadcasting for Up-linking and broadcasting.

In order to regulate debt flows into India, the Reserve Bank of India ("RBI") had vide its Notification dated 3rd May 2000 regulated the prohibition, restriction of the transfer or issue security by a person resident outside India.

Earlier banks were permitted to offer credit/non credit facilities to Indian Joint Ventures (JVs)/ Wholly Owned Subsidiaries (WOS) abroad upto 10% of the bank’s unimpaired capital funds (Tier I and Tier II) on the following conditions:

The Reserve Bank of India ("RBI"), with a view to simplify procedures and providing enhanced flexibility in respect of foreign exchange transactions, had liberalized the remittance scheme by enhancing the then existent remittance limit of USD 25,000.

The Insurance Regulatory and Development Authority (“IRDA”) has vide its circular dated 8th January 2007 reviewed the guidelines on Indian Insurance Companies opening liaison offices overseas and has defined a Representative/ Liaison Office as “a place of business to act as a channel of communication between the principal place of business or Head Office by whatever name called and entities in India but which does not undertake any commercial / trading /industrial activity, directly or indirectl

At present, the consumer protection legislation confers certain rights on consumers to safeguard their interests viz. protection against marketing of goods and services hazardous to life and property

Securities Exchange Board of India (SEBI) had banned all assured returns and capital schemes, constituting popular investment grounds globally, from the Indian market

Initially, Foreign Direct Investment (FDI) up to 49% was permitted in companies investing in the infrastructure / services sector excluding the telecom sector.

Pursuant to regulation 7 of the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004.

The Ministry of Finance ("MOF") has by a recent notification further liberalized the Scheme for Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism), 1993 ("Scheme") by permitting unlisted Indian companies, like those engaged in real estate business, to sponsor an issue of American Depository Receipts (ADRs)/ Global Depository Receipts (GDRs) with an overseas depository against shares held by its shareholders

With a view to simplifying the procedures and providing greater flexibility in foreign exchange transactions, the Reserve Bank of India (“RBI”) has vide its circular dated 20th December 2006, liberalized the Remittance Scheme of USD 25,000 (“Scheme”) by enhancing the remittance limit for resident individuals.

In light of the judgement of the Supreme Court of India in Government of India & Ors v/s Cricket Association of Bengal & Ors directing that airwaves or frequencies are public property and have to be controlled and regulated by a public authority in the promotion of the general interest of the public, the Ministry of Information and Broadcasting ("MIB") had been contemplating the enactment of a legislation for regulating the operation of broadcasting services in India.

To accelerate inflow of FDI in India and further simplify the techniques employed in calculation of FDI, Government of India (GOI) is likely to propose a Bill governing indirect shareholdings of foreign investors in Indian companies.

In accordance with the Foreign Exchange Management (Guarantees) Regulations, 2000 an authorised dealer was permitted to provide a guarantee in respect of any debt, obligation, or other liability incurred by a person resident in India:

At present Mutual Funds registered with the Securities and Exchange Board of India (SEBI), are entitled to invest in American Depository Receipts (ADRs) / Global Depository Receipts (GDRs) issued by Indian companies, rated debt instruments and in the equity of overseas companies listed on a recognised overseas stock exchange with a shareholding of not less than ten percent in a listed Indian company.

In order to regulate pre – issue publicity by companies proposing to make a public or rights issue and with a view to making the Indian primary market more efficient and transparent, the Securities and Exchange Board of India, (“SEBI”), has vide its circular dated 18th October 2006, operationalised a new norm whereby publicity made during the period commencing from the date of approval of the issue by the Board of Directors of the issuer company till the allotment of shares in the issue, is cons

With a view to curb security threats caused by inflow of FDI in various sectors, the National Security Council (NSC) has decided to promulgate an umbrella legislation known as National Security Exception Act (NSEA) aimed at imposing checks on the FDI flow into India.