Currently, with the FDI ban on multi-brand retail trade, the only viable avenues available to foreign retail players is to enter into license agreements with Indian corporates to enter the India market.

The Securities and Exchange Board of India ("SEBI") has by its Circular dated 5<SUP>th</SUP> April 2006 increased the limits of cumulative debt investment from US$ 1.75 billion to US$ 2 billion for Foreign Institutional Investor ("FII")/ Sub Account investments in Government Securities and from US$ 0.50 billion to U$ 1.50 billion for FII/ Sub Account investments in Corporate Debt

Presently, an Indian company is permitted to undertake direct investment in all its Joint Ventures (JV) and/ or Wholly Owned Subsidiaries (WOS) abroad engaged in bona fide business activities, provided that the total financial commitment / overseas investment of the Indian company in such JV or WOS does not exceed 300% of its net worth, by virtue of the provisions of the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 ("Regulations").

As per the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (Regulations), presently, listed Indian companies are permitted to invest upto 35 per cent of their net worth as on the date of their last audited balance sheet, in the shares of overseas companies listed on a recognized stock exchange and having a shareholding of atleast 10 per cent in any domestic listed company as also in rated bonds and fixed income securities issued by the overseas company.

While LLP has been a popular form of organization adopted by professionals, particularly lawyers, accountants and architects, internationally, GOI has as late as 2006 recognized the necessity to implement a regulatory framework to establish LLPs in India.

The legislature having experienced and realised that the members of the Managing Committee of different co-operative societies were acting in an arbitrary manner

Earlier Non-Banking Financial Companies (NBFCs) had been directed to give three months’ prior public notice of the intention to sell or transfer ownership whether by way of sale of shares or transfer of control without sale of shares in a leading national newspaper and another leading vernacular newspaper.

The Liberalized Remittance Scheme (Scheme) notified by the Reserve Bank of India (RBI) for provision of simplified foreign exchange facilities to resident individuals, has been amended periodically to further liberalize the remittance limits that may be availed of by residents for permissible capital and current account transactions or a combination thereof.

With a view to provide enhanced opportunities to invest overseas, the Reserve Bank of India ("RBI"), had on 16<SUP>th</SUP> November 2006, increased the ceiling on investments by Mutual Funds registered with the Securities and Exchange Board of India ("SEBI"), pursuant to which the aggregate ceiling for overseas investments by SEBI registered Mutual Funds was enhanced from the then existing limit of USD 2 billion to USD 3 billion

Earlier, the Reserve Bank of India had enhanced the limit for prepayment of External Commercial Borrowings (ECB) under the ECB Policy to USD 400 million from the earlier limit of USD 300 million.

Earlier, the Securities and Exchange Board of India (SEBI) had raised the aggregate ceiling for investment by mutual funds in American Depository Receipts (ADRs)/ Global Depository Receipts (GDRs) issued by Indian corporates, equity of overseas companies listed on recognised stock exchanges overseas and rated debt securities from US$ 1 billion to US$ 2 billion.

Earlier, the Reserve Bank of India ("RBI") had permitted resident entities having overseas direct investments in equity and loans, to hedge the exchange risk arising out of such investments.

The Reserve Bank of India ("RBI") has, vide its circular dated 30<SUP>th</SUP> April 2007, and in consultation with the Securities and Exchange Board of India ("SEBI"), decided to permit investment by Indian Venture Capital Funds (VCFs), registered with SEBI, in equity and equity-linked instruments of off-shore venture capital undertakings.

100% Foreign Direct Investment (FDI) under the automatic route is permitted in townships, housing, built-up infrastructure and construction-development projects to create employment opportunities, generate economic activity and supplement available housing stock and built-up infrastructure, circumscribed by certain limitations in respect of the minimum area required to be developed in the case of serviced housing plots and construction development projects and capitalization for FDI by wholly ow

The SEBI (Disclosure and Investor Protection) Guidelines, 2000 (Guidelines) have been amended by SEBI vide its Circular dated 16th October 2006.

The Reserve Bank India (“RBI”) had vide its circular dated July 26, 2006, liberalized overseas investments by mutual funds registered with Securities Exchange Board of India (“SEBI”) and enhanced the aggregate ceiling from USD 1 Billion to USD 2 Billion.

In light of Non-Banking Financial Companies (NBFCs) which are no longer engaged in the business of Non Banking Financial Institution (NBFI) continuing to hold the Certificate of Registration (CoR).

The current FDI norms impose a ceiling of 24 per cent FDI for companies in the SSI sector.

In a recent move, the Government of India has decided to adopt a new policy in respect of foreign investments in infrastructure companies in the securities market.

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.