FII Current Affairs - 2019
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Union Cabinet has given nod to introduce composite foreign investment cap in a bid to streamline the Foreign Direct Investment (FDI) structure.
Decision in this regard was taken during Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
This move will help government to club all forms of overseas investments such as FDI, Non-resident Indians (NRIs), foreign institutional investors (FIIs) and other foreign investments to define sectoral limits as a composite cap.
Present policy has different caps for separate investment categories like FDI, FII and NRIs. The proposed sectors for composite foreign investment cap are agriculture, mining, tea, broadcasting, airports, media, retail (single brand and multi-brand), asset reconstruction companies, e-commerce, banking, insurance and commodity exchanges.
Thus it will simplify the FDI policy with a view to attract foreign investments and also improving ease of doing business in India.
Apart from this decision, Cabinet Committee on Economic Affairs (CCEA) also gave its approval for development of 6 lanning of Eastern peripheral expressway in Uttar Pradesh and Haryana.
The cost is estimated for this project is to be 7,558 crore rupees including 1,759 crore rupees for land acquisition, rehabilitation and resettlement activities.
The main objective of this project is to expedite the movement of infrastructure in the states of Uttar Pradesh and Haryana. Its development will also help in uplifting the socio-economic condition of the concerned regions of the state.
Union Government has constituted Committee headed by Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs).
It was announced by Union Finance Minister Arun Jaitley in Rajya Sabha. The committee will submit its report expeditiously in order to resolve the issue of MAT between the tax authorities and the foreign investors.
Government uses the MAT to get companies, which pay less or zero tax due to the available exemptions to pay some tax.
The issuance of such tax demand on FIIs has caused an outcry among them as they were exempted from paying such taxes from April 1, 2015.
But the tax authorities have demanded MAT in respect of previous years i.e. till 2014-15.