India a good destiny for Intestment - E&Y

Favourable demographics and growth opportunities keep India an "attractive" destination for merger and acquisition activities across diverse sectors including consumer goods and pharmaceuticals, according to global consultancy Ernst & Young.

 "Catering to a growing, expanding and spending population is what every organisation wants to do. So there is a lot of interest from outside India to come inbound," E&Y Global Vice Chair (Transaction Advisory Services) Phillipa McCrostie told PTI in an interview.

 "I don't think India's growth is based on one factor or bubble that has evaporated and gone away. It is exciting time in India for M&A growth," she said.

Full text can be read at  http://j.mp/Zl0fog

FDI Investment in Telecom, Information & Broadcasting

A total of Rs. 29,209.78 crores and Rs. 8,654.06 crores have been invested through Foreign Direct Investment (FDI) equity between 2009-12 in telecommunications and information & broadcasting sectors according to a report released by the government of India. Rs 386.55 crores was invested as FDI between April – December 2012 as compared to Rs. 9,011.53 crores between 2011-12 and Rs. 7,542.04 crores invested between 2010-11 according to the report. It is worth noting that in February 2012, the government wanted the 100% cap on FDI in telecom tower companies to be cut to 74% in par with other telecom services. Rs 1,162.26 crores was invested as FDI in the information & broadcasting sector between April-December 2012 as compared to Rs. 3,264.09 between 2011-2012 and Rs. 1,887.17 between 2010-11.

Panel to resolve FDI-FII issue

The first meeting of the Government constituted committee to clear the prevailing ambiguity on FDI and FII has been convened on March 19.

The four-member panel headed by Economic Affairs Secretary Arvind Mayaram will meet here to discuss how the Budget announcement on this issue can be taken forward and implemented.

The panel report is expected in the next 2-3 months.

Finance Minister P. Chidambaram had in Budget 2013-14 announced the Government’s intent to follow international practice in deciding what constitutes foreign direct investment and what constitutes foreign institutional investment.

The Government proposes to lay down a broad principle that where an investor has a stake of 10 per cent or less in a company, it will be treated as FII.

In cases where the investors have a stake of more than 10 per cent, it will be treated as FDI.

Besides Mayaram, the four-member panel comprises Department for Industrial Policy and Promotion Secretary, a Reserve Bank of India Deputy Governor and a SEBI whole-time member.