Lawyers

  • Naman Saraswat

    Sr. Associate

    B.Com, LL.B

    Naman@astrealegal.com

    Practices Corporate and commercial,infrastructure,corporate finance, electricity regulatory,M&A activities, IPO, QIP, Bond Issuances and Private Equity Transactions

  • Kshitij Lunkad

    Sr. Consultant

    B.S.L LL.B, CS

    k.lunkad@astrealegal.com

    Practices Import and Export, Business formation, Transaction, Joint venture, Merger & Acquisition, FDI, Liquidation and Foreclosure

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Amendments to Foreign Investment Regulations in Commodity Exchanges

    1. The term “commodity exchanges” in Para 5.2.21.1 has been amended to “commodities derivatives exchanges.”

    2. Revised Para 5.2.21.2:

      Previously, Para 5.2.21.2 stated:

      • FIIs/FPIs could invest only through purchases in the secondary market.
      • No non-resident investor or entity, including persons acting in concert, could hold more than 5% equity in commodity exchanges.
      • Foreign investment in commodity exchanges was subject to guidelines issued by the Central Government or SEBI from time to time.

      The amended version now reads:

      • Foreign investment, including investment by FPIs, will be subject to the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, and the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, as amended from time to time.
      • Compliance with other relevant guidelines or regulations issued by the Central Government, SEBI, and the Reserve Bank of India (RBI) will also be required.
      • Words and expressions used herein but not defined in these regulations shall have the meanings assigned to them in the Companies Act, 2013, Securities Contracts (Regulation) Act, 1956, SEBI Act, 1992, Depositories Act, 1996, or other relevant SEBI regulations.