Revised FDI Policy belies optimism

It is this time of the year when the Government conducts its bi-annual review of the policy on foreign direct investment (FDI). Consistent with the previous trend over the last couple of years, it announced on Sept.30, 2011 the Consolidated FDI Policy in the form of Circular No. 2 of 2011, which comes into effect from October 1, 2011. 

The key changes announced are as follows:
1. Construction development activities: The education sector and old-age homes are exempted from the conditions that apply to construction-development activities in the real estate sector. These conditions include minimum built-up area, minimum capitalization and lock-in. 

2. Agriculture: Apiculture (bee-keeping) has been allowed under the category of permitted agricultural activities under controlled conditions. 

3. Industrial Parks: Basic and applied R&D on bio-technology, pharmaceutical sciences/ life sciences has been allowed as ‘industrial activity’ for purpose of establishing industrial parks, where FDI is allowed up to 100% under the automatic route. 

4. FM Radio: FDI has been increased from 20% to 26%. 

5. Conversion of Advances into Equity: In case of conversion of imported capital goods/machinery and pre-operative/pre-incorporation expenses into equity instruments (which was permitted effective April 1, 2011), the application to the FIPB must be made within 180 days from the date of shipment of capital goods/machinery or retention of advance against equity. 

6. Pledge/Escrow: Resident investors can pledge their shares in an Indian company against external commercial borrowings (ECB) raised by such company from foreign lenders. Moreover, several procedural aspects of equity investment have been eased: these include the ability of foreign investors to open escrow accounts towards payment of share consideration and for keeping securities to facilitate FDI transactions. 

Compared to the last round of changes in April 2011, the new policy Has made only largely incremental advancements and clarifications. It does not make  material changes in any sector that is of significance in the overall development of the economy.

Article Courtesy - Prof. Suresh Thakur Desai

Inaugural Post by Mr.Shailesh Mehta, Founder CEO GOLS

Dear Students,

You are welcome to ICSI eLearning blog meant to be a collaborative discussion forum for students, faculties, ICSI and GOLS.The sole aim of this is to provide  a  great learning experience and help students come out with flying colors in ICSI exams.

We at GOLS believe elearning is the answer to many challenges facing education and coaching in the country.  Elearning not only provides convenience and flexibility of distance learning  but also faculty support and experience of classroom learning and much more.To this end, we are constantly innovating and adding features which we believe are helpful to students and lessen their stress of examination.  Over the years we have added many features like; Step by step method of solving problems( for Accounts, Maths, Statistics and Taxation subjects), practical examples and case studies(for Legal  and Taxation subjects),  doubts solving sessions, practice tests and of course solved question papers of previous exams. In addition, our Video Based Training is delivered by highly experience CS/CA experts approved by ICSI.  This not only helps students to learn from expert faculties but offer  added advantage of learning anywhere, any times and as many times!  In addition, we have also provided notes; so that you can download it on your computer or take print. You can also download on your mobile to study on the go and right up to exam hall! We have also launched our presence on Facebook, to which we have received good response and expect more and more students to joint and give your feedback.

We have also launched Exam Preparatory Course – akin to Mock Exams which have found good acceptance among students.  The first such session shall begin very shortly so that students appearing in Dec-2011 are benefited.

If you have any query, you can always contact us on chat, phone or email.Contact details are given on website.  In addition, you can post you academic query in discussion forum of Learning Management System (LMS) and you will receive reply within 48 hour.  Besides,  you can also attend Live  Virtual Classroom to get your doubts or queries solved.

Soon we shall be launching Live Virtual Classroom – over mobiles, so that difficult topics and doubts can be solved even if you are travelling or not on your desktop!

Whilst we are constantly thinking of ways to improve our offerings so that you are benefited, we can only be as good as what you think about ourselves and our offerings.We shall be grateful for your feedback and constructive criticism!  We await your response!

Yours sincerely,

Shailesh Mehta

Elearning Evangelist and Founder CEO GOLS