Business Daily from THE HINDU group of publications
Wednesday, Nov 11, 2009
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Business Daily from THE HINDU group of publications Wednesday, Nov 11, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Regulatory Bodies & Rulings Markets - Financial Services
Moumita Bakshi Chatterjee New Delhi, Nov. 9 The Foreign Investment Promotion Board (FIPB) has recommended that a decision be deferred on a proposal moved by JM Financial Asset Reconstruction Company for roping in Valiant Mauritius Partners FDI Ltd as an investor. The recommendation for deferral of the proposal comes in the wake of apprehension that Valiant Mauritius could have linkages with foreign institutional investors (FIIs). Under the current norms, no FII investment is allowed in asset reconstruction companies. Foreign direct investment to the extent of 49 per cent is permitted with prior FIPB approval. According to the proposal, Valiant Mauritius will invest Rs 16.6 crore into JM Financial Asset Reconstruction for a nearly 8 per cent stake through preferential allotment route. Although FIPB has given its recommendations, the Finance Minister, Mr Pranab Mukherjee, is yet to take a final view on it, sources said. The proposal came up for discussion in the last meeting of FIPB. It is learnt that one view within the Finance Ministry was that not much details were known about the foreign investor (Valiant Mauritius). Valiant Mauritius was set up in 2008 as a Fund. The Indian authorities contend that the company seems to have FII linkages and therefore more time was needed to scrutinise the application. JM Financial Asset Reconstruction Company was incorporated in 2007 and focuses on asset reconstruction and securitisation. More Stories on : Regulatory Bodies & Rulings | Financial Services | Non-Performing Assets
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