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Consolidated FDI Policy Of India 2012 By DIPP

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FDI In Limited Liability Partnerships (LLPs) In India 2012

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India (GOI) has released the Consolidated FDI Policy of India 2012. The FDI policy 2012 has become effective from April 10, 2012.

The FDI policy 2012 has provided certain crucial definitions that must be well known to all concerned. Perry4Law and Perry4Law Techno Legal Base (PTLB) have already shared the general conditions to be followed by all concerned to make successful and legal FDI in India.

In this post, Perry4Law and PTLB would share the conditions precedent for FDI in Limited Liability Partnerships (LLPs) in India as per the Consolidated FDI Policy of India 2012 of DIPP.

FDI in LLPs in India is permitted, subject to the following conditions:

(i) FDI will be allowed, through the Government approval route, only in LLPs operating in sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions (such as ‘Non Banking Finance Companies’ or ‘Development of Townships, Housing, Built-up infrastructure and Construction-development projects’ etc.).

(ii) LLPs with FDI will not be allowed to operate in agricultural/plantation activity, print media or real estate business.

(iii) An Indian company, having FDI, will be permitted to make downstream investment in an LLP only if both-the company, as well as the LLP- are operating in sectors where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions.

(iv) LLPs with FDI will not be eligible to make any downstream investments.

(v) Foreign Capital participation in LLPs will be allowed only by way of cash consideration, received by inward remittance, through normal banking channels or by debit to NRE/FCNR account of the person concerned, maintained with an authorized dealer/authorized bank.

(vi) Investment in LLPs by Foreign Institutional Investors (FIls) and Foreign Venture Capital Investors (FVCIs) will not be permitted. LLPs will also not be permitted to avail External Commercial Borrowings (ECBs).

(vii) In case the LLP with FDI has a body corporate that is a designated partner or nominates an individual to act as a designated partner in accordance with the provisions of Section 7 of the LLP Act, 2008, such a body corporate should only be a company registered in India under the Companies Act, 1956 and not any other body, such as an LLP or a trust.

(viii) For such LLPs, the designated partner “resident in India”, as defined under the ‘Explanation’ to Section 7(1) of the LLP Act, 2008, would also have to satisfy the definition of “person resident in India”, as prescribed under Section 2(v)(i) of the Foreign Exchange Management Act, 1999.

(ix) The designated partners will be responsible for compliance with all the above conditions and also liable for all penalties imposed on the LLP for their contravention, if any.

(x) Conversion of a company with FDI, into an LLP, will be allowed only if the above stipulations are met and with the prior approval of FIPB/Government.

Consolidated FDI Policy Of India 2012 By DIPP: Objectives

Perry4Law and Perry4Law Techno Legal Base (PTLB) would like to inform that the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India (GOI) has issued the Consolidated FDI Policy of India 2012. The same would be effective from April 10, 2012.

The consolidated FDI policy of India 2012 reflects the intent and objective of the GOI to attract and promote foreign direct investment (FDI) in order to supplement domestic capital, technology and skills, for accelerated economic growth. FDI, as distinguished from portfolio investment, has the connotation of establishing a lasting interest in an enterprise that is resident in an economy other than that of the investor.

To achieve this objective, the Indian Government has put in place a policy framework on FDI, which is transparent, predictable and easily comprehensible. This policy framework has been incorporated in the Consolidated FDI Policy of India 2012, which may be updated every year, to capture and keep pace with the regulatory changes, effected in the interregnum.

DIPP, Ministry of Commerce and Industry, GOI makes policy pronouncements on FDI through Press Notes/ Press Releases which are notified by the Reserve Bank of India (RBI) as amendments to the Foreign Exchange Management (Transfer or Issue of Security by Persons Resident Outside India) Regulations, 2000 (notification No.FEMA 20/2000-RB dated May 3, 2000). These notifications take effect from the date of issue of Press Notes/ Press Releases, unless specified otherwise therein. In case of any conflict, the relevant FEMA Notification will prevail. The procedural instructions are issued by the Reserve Bank of India vide A.P. Dir. (series) Circulars. The regulatory framework, over a period of time, thus, consists of Acts, Regulations, Press Notes, Press Releases, Clarifications, etc.

The present consolidation subsumes and supersedes all Press Notes/Press Releases/Clarifications/ Circulars issued by DIPP, which were in force as on April 09, 2012, and reflects the FDI Policy as on April 10, 2012. This Circular accordingly will take effect from April 10, 2012. Reference to any statute or legislation made in this Circular shall include modifications, amendments or re-enactments thereof.

Notwithstanding the rescission of earlier Press Notes/Press Releases/Clarifications/Circulars, anything done or any action taken or purported to have been done or taken under the rescinded Press Notes/Press Releases/Clarifications/Circulars prior to April 10, 2012, shall, in so far as it is not inconsistent with those Press Notes/Press Releases/Clarifications/Circulars, be deemed to have been done or taken under the corresponding provisions of this circular and shall be valid and effective.

Is Cloud Computing A Viable Solution In India?

Cloud computing has been projected as an essential requirement in India these days. However, this assertion fails to mention that cloud computing in India is legally risky. The rush for use of cloud computing in India has also ignored the analysis whether cloud computing is a viable solution in India or not.

Cloud computing to be viable and sustainable must be supported by many elements including a sound regulatory framework for the same. Till now we have no dedicated regulatory framework for cloud computing in India. In fact, we have no legal framework for cloud computing in India at all.

As per the recent research and studies of Perry4Law and Perry4Law Techno Legal Base (PTLB), cloud computing in India is risky and India is not ready for cloud computing. This conclusion of Perry4Law and PTLB has been endorsed by other companies and it has been reported that chief information officers (CIOs) in India are not comfortable using cloud computing in India.

Absence of an effective cloud computing policy of India is responsible for limited utilisation of cloud computing in India. However, legal issues of cloud computing in India are the main reason for cautious adoption of cloud computing in India.

Further, India is a country that has weak privacy, data protection and data security laws. India is also infamous for its e-surveillance and eavesdropping exercises without any constitutional laws backing the same. Phone tapping in India is not done in a strictly constitutional manner and we also lack a lawful interception law in India.

With the information technology amendment act, 2008 (IT Act 2008), the cyber law of India has been amended and this has also made it vulnerable to constitutionality attacks. With projects like national intelligence grid (Natgrid), crime and criminal tracking network and systems (CCTNS), central monitoring system (CMS), etc e-surveillance in India has reached its zenith.

In this background we have to analyse the use of cloud computing in India. Cloud computing in India cannot succeed till we have trust in the service provider. We cannot trust a service provider who can be forced to disclose even the most sensitive information and data without a court order.

In India a mere order from the Indian government or its agencies is enough for the service provider to share sensitive information. There is no judicial scrutiny of a warrant that is absolutely required in these circumstances. So you cannot be even sure what government agencies are looking at and what information they are taking from the service provider.

Any business model must essentially balance profit motives and risks associated with the business. Similarly, the users of cloud computing services must ensure that the convenience of software as a service (SASS) and cloud computing is much greater than the risks of data leakages and manipulations.

Till now the legal opinion is weighting against the use of cloud computing and SAAS in governmental departments and for governmental projects. Without a conducive legal framework, user’s data in India is not safe. Let us create a conducive commercial and legal environment before we jump upon cloud computing wagon.

Corporate Skills Development In India Is Required

Corporates across the world are struggling to hire skilled and knowledgeable workforce. Surprisingly, only 20 to 25% of graduates and professionals are worth employment in these corporates. Educational institutions producing these graduates are not only outdated but are also academic in nature. They do not provide practical trainings and workable experience to these graduates.

India is no different in this regard and Indian government has a tremendous job in hand to change this situation. Skills developments in India are urgently required to change this position. Further keeping in mind the techno legal requirements of present times, techno legal skills development in India are also required.

Techno legal areas like cyber law, cyber security, cyber forensics, ethical hacking, etc are worst affected. In the name of technical education mere academic diplomas and degrees are provided that are not helping the students in any manner whatsoever.

Perry4Law, Perry4Law Techno Legal Base (PTLB) and Perry4Law Techno Legal ICT Training Centre (PTLITC) believe that information and communication technology (ICT) can help Indian government in achieving the goals set by it regarding skills development. For instance, use of e-learning, online education and distance learning education system can not only ease the pressure from traditional universities and educational institutions but would also help in providing technical and practical education to masses across India.

Perry4Law, PTLB and PTLITC are providing exclusive techno legal e-learning courses in India and techno legal skills development trainings and courses in India. PTLB is providing various techno legal courses for corporate executives, CEOs, CIOs, etc.

Companies and CEOs are required to follow cyber law due diligence in India and must comply with the requirements of Internet intermediaries to get the safe harbour protection under Indian laws. PTLB is providing exclusive techno legal cyber law trainings for corporate executives and CEOs in India.

These trainings have been specifically designed so that corporate executives and CEOs can successfully comply with Indian laws, especially information technology act, 2000 (IT Act 2000) that is the cyber law of India. If you are interested in our techno legal trainings, kindly enroll with us in this regard.

We are committed to improve the techno legal skills developments in India are looking forward for suitable partners and associates in this regard. Read our e-learning blog for regular updates in this regard.

New GTLDs Applicants Must Ensure Due Diligence Before Applying

As the readers of the blog are aware Internet Corporation for Assigned Names and Numbers (ICANN) has already laid down stringent conditions for the acceptance of an application for registration of new GTLDs. The application amount for normal applicants has been quantified at US $ 1, 85,000. This would keep the non serious applicants out of the race to get a new GTLD.However, merely giving this

Internet Access Is A Fundamental Human Right In Cyberspace

Civil liberties protection in cyberspace has taken a centre stage these days. International community is getting serious in protecting valuable civil liberties that are openly violated by various nations. For instance, the Council of Europe issues a resolution that prohibits abuse of state secrecy and national security for violating civil liberties. Similarly, United Nations has also declared

Electronic Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.

Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in India are done these days in an online environment. Companies and individuals are also ensuring domain name protection in India so that their reputation and goodwill is not misappropriated by others.

We have no dedicated e-commerce laws in India. However, the information technology act 2000 (IT Act 2000), which is the sole cyber law of India, is regulating the e-commerce business and transactions in India. Internet intermediaries liability in India under the IT Act 2000 is very stringent. Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in.

Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of good and services, everything happens in an online environment.

Of course, where commercial transactions occur, disputes and differences are bound to occur. To prevent and resolve these disputes we need norms, regulations and laws that are acceptable to all the stakeholders.

The e-commerce law of India is primarily incorporated in the information technology act, 2000 (IT Act 2000) that takes cares of legal obligations of both sellers and buyers of good and services in cyberspace.

The IT Act 2000 prescribes rules and norms for online contract formulation. The traditional concepts of offer, acceptance etc, as applicable under the contractual laws, have also been covered by the IT Act 2000. The only difference is that they have been customised as per the requirements of cyberspace.

However, e-commerce transactions and contracts also attract certain additional legal liabilities that e-commerce players in India are not very much aware. For instance, very few e-commerce players in India are aware that they are “intermediaries” within the meaning of IT Act 2000. Further, there are very few e-commerce lawyers and law firms in India that can provide expert services in this regard.

Further, other laws, including intellectual property laws, make these e-commerce players labile for civil and criminal actions. For instance, these e-commerce players can be held liable for online infringement of copyright in India of the copyright owners.

Similarly, if any person posts an offending material at the e-commerce site or otherwise deal with the e-commerce site in an illegal manner, the e-commerce site owner may find himself in trouble.

Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in. The present laws of India are stringent in nature and subsequently claiming ignorance of such laws would not make much difference.

Perry4Law and Perry4Law Techno Legal Base (PTLB) strongly recommend that before opening an e-commerce site or business, the owner of the same must consult a good techno legal law firm that can advice him upon all the possible and applicable aspect of e-commerce laws in India.

E-Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in

Social Networking Laws In India

With the fast growing social networking platforms in India it has become essential to enact effective social media laws in India. Presently social networking laws in India are not mature enough to take care of social media in the most appropriate manner. Social media is considered to be an Internet intermediary as per Indian cyber law. The recent controversy of Internet censorship in India has

Social Media Laws In India

Social media laws in India are in limelight these days. Social media websites are very popular among technology savvy as well as ordinary Netizens. More and more Netizens are joining social platforms to share their opinions, views, data and details. However, social networking laws in India are not adequate and properly drafted.Social media includes social networking sites, blogs, forums, wikis,

Virtual Campuses Can Eliminate Corruption In Higher Education Of India

All of you must remember Jaspal Bhatti’s flop show and the episode pertaining to PhD. The episode explained how PhD researchers in India are exploited by their supervisors in cash and kind. That was a classical comedy that portrayed the corrupt higher educational system of India.Years have passed but the bitter truth still prevails in India. Although HRD minister Kapil Sibal is doing great to

E-Commerce Laws In India

Information and communication technology (ICT) has changed the way we make our commercial transactions. Even payments for such online dealings and transactions can be made through an online mode. One such commercial use of ICT is electronic commerce.Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of

Online Commercial Arbitration In India

Arbitration is a cost effective and expeditious dispute resolution mechanism. A majority of commercial disputes are resolved through the mode of arbitration. International commercial arbitration has also become an emerging trend these days. Generally, an arbitration clause is incorporated in various contracts and commercial contracts that prescribe resolution of a future dispute through

ICT Training Institutes In India

Information and communication technology (ICT) has transformed the way we live in today’s environment. All aspects of our day to day life have ICT as an essential component. ICT has also transformed the way trainings are imparted for various professional courses.These days training, education and courses are imparted in an online environment through e-learning method. Skills developments are also

Legal E-Learning Courses In India

E-learning has changed the entire game of education providing in India. In a country like India, qualitative and timely education is very difficult to find. Universities, colleges and educational institutions of India are not only overcrowded but they are also following the traditional and old academic model.This has sacrificed practical trainings and skills development in India to a greater

Indian Social Media Framework And Guidelines For Government Organisations

Social networking has become a phenomenon these days. India has a staggering numbers of social networking users that is constantly increasing. Social networking is an equivalent of real life associations and groups. Sooner or later India would require considering this social phenomenon as it would touch all the aspects of Indian culture and life.

Till now we have no social media policy in India.

Online Cyber Law Education In India

Online education is in its infancy stage in India. This is more so for techno legal courses like cyber law, cyber forensics, cyber security, professional techno legal courses, etc where neither the traditional education and training institutions nor the contemporary education and training institutions are well versed.Here comes the importance of online cyber law education in India. Cyber law is a

Online Legal Training In India Rejuvenated

Legal training is not an easy task to achieve. This is more so in the contemporary era where information technology (IT) has changed the entire landscape of legal education and training.For instance, few years back law colleges and universities were not aware about the concept of cyber law. Now law colleges and universities have started offering courses in cyber law and similar topics. Although

Online Lawyers Professional Trainings In India And Asia

Indian government has been taking information and communication technology (ICT) seriously these days and the same applies to law ministry as well. Law ministry has been planning to use ICT for multiple legal and judicial purposes. From legal education and training to establishment of e-courts in India, law ministry of India has plans for all.Lawyers play the central role in all legal and

Digital Preservation Mandates Of Public Records Act 1993

Digital Preservation in India and Digitilisation of traditional records are in the infancy stage. This is so because we have no Legal Framework for E-Governance in India. We have no law that mandatorily requires creation of Electronic Records. Of course, very soon such law may be required due to International pressure and National requirements.Information Technology Act, 2000 (IT Act, 2000) is

E-Discovery Outsourcing, LPO And KPO Services In India

Outsourcing industry is witnessing many ups and downs in India. This is natural in a dynamic environment in which we live today. However, information and communication technology (ICT) related outsourcing issues are posing the biggest challenge before the outsourcing industry of India.Indian outsourcing industry carries on business process outsourcing (BPO), legal process outsourcing (LPO),

E-Discovery Laws And Practices In India

Electronic discovery or e-discovery is a crucial component of corporate management, litigation services, response management, cyber security and so on. E-discovery is used for multiple purposes and by varied organisations and individuals these days.E-discovery has many purposes to achieve. It can be used as an effective measure to prevent frauds from being committed by timely detection of

Techno Legal Decryption Solutions By PTLB

A Government Panel has recently given its opinion that Encrypted Services in India would not be banned even if the Intelligence agencies cannot “Intercept” these Encrypted Communications. This would not be pleasant news for Home Ministry of India and Intelligence Agencies of India who now have to acquire Techno Legal Intelligence Gathering Skills to deal with Encrypted Communications.Home

First Techno Legal Cyber Crimes Investigation Manual Of India

Cyber law is a technical subject and this is the reason why law enforcement officials, lawyers and judges find it difficult to understand and apply. This is also the reason that we have a very bad conviction ratio for cyber criminals in India.The task of police, lawyers and judges would become easier if there is a ready reference that they can refer and rely upon in cases of cyber crimes.

E-Discovery In India And Its Uses

ByBaljeet Singh Electronic discovery has many purposes to achieve. It can be used as an effective measure to prevent frauds from being committed by timely detection of suspicious activities. It can also be used for detection of these frauds and crimes after their commission. Thus, e-discovery is both preventive and curative in nature.E-discovery must be regulated by a legal framework to give it

Techno-Legal Online Cyber Security Research, Training And Educational Centre of India

Cyber security management is a tough task especially if it is techno-legal in nature. In that case one has to manage not only the technical aspects but also the legal aspects. Perry4Law is the leading Techno-legal ICT law firm of World. It has many techno-legal segments like Perry4Law Techno-Legal Base (PTLB), Perry4Law Techno-Legal ICT Training Centre (PTLITC), etc. Perry4Law is also running

First E-Judiciary Training And Consultancy Centre Launched In India

India is at the initial stages of establishment of electronic courts (e-courts). Though India has done a good job by computerising the courts at various levels yet it is still far from the establishment of even the first e-court of India. It seems the e-courts project of India needs a techno-legal training boost.Perry4Law and PTLB have launched the first ever e-courts training and consultancy

Techno-Legal Education In India Got A Boost

Legal education in India is in the process of transformation. However, there are urgent educational and legal reforms that must be undertaken by India as soon as possible. One such area that requires urgent attention is the amalgamation of legal education with information and communication technology (ICT). For instance, cyber law is an important facet of such an interaction of technology and

Cyber Law Training And Coaching In India Rejuvenated

Cyber law is a subject that is less appreciated and even lesser applied in India. Whether it is the law making in this regard or its execution and enforcement, by and large cyber law scenario in India needs rejuvenation.The position in this regard cannot be improved till we inculcate appropriate knowledge and skills at the initial stages of education. Cyber law education in India is at its

BACKTRACK 4 FINAL RELEASE: AN ESSENTIAL TOOL IN YOUR CYBER SECURITY AND CYBER FORENSICS ARSENAL

The final and stable version of Backtrack 4 series is a wonderful penetration testing, cyber security and cyber forensics tool. It is not only a powerful utility but is also useful for multiple purposes. The best part is that it is available to the security and forensics community free of cost.Although Backtrack has always been a good tool but its team(s) must be congratulated for not only

TECHNO-LEGAL E-LEARNING, HIGHER EDUCATION AND LIFELONG LEARNING CONSORTIUMS AND PARTNERSHIPS

Perry4Law is the First and Exclusive Techno-Legal ICT Law Firm in India and one of the best in the World. Perry4Law Techno-Legal Base (PTLBTM/SM) is managing various Techno-Legal Consultancy, Litigation, Research, E-Learning, Higher Education and many more such “Highly Specialised” and “Domain Specific Services”.Some areas where Perry4Law can collaborate and provide its Specialised Techno-Legal

TECHNO-LEGAL SUPPORT AND TRAINING FOR CRIME AND CRIMINAL TRACKING NETWORK AND SYSTEMS (CCTNS) PROJECT OF INDIA

Crime and Criminal Tracking Network & Systems (CCTNS) Project (CCTNS Project) has been approved by the Cabinet Committee on Economic Affairs. It has a financial cushion of Rs.2000 Crores as per the 11th Five Year Plan. The Project would be initiated by the Ministry of Home Affairs and implemented by the National Crime Records Bureau. The CCTNS project is to be implemented in a manner where the

CRITICAL ICT INFRASTRUCTURE PROTECTION IN INDIA: NEED OF THE HOUR

In recent years, the frequency and sophistication of cyber security attacks on global Critical Information and Communication Technology (ICT) Infrastructure (Critical ICT Infrastructure) has greatly increased. Cyber-security experts have been warning of the vulnerability of Critical Infrastructure like Power, Energy, Transportation, Water Systems, etc to malicious hackers. Recently hackers have