Mumbai: India is tightening transparency rules for “high risk” foreign investors, as part of the fallout from allegations of stock manipulation made by short seller Hindenburg against.
The International Financial Services Centres Authority (IFSCA) is learnt to have approached the ministry of finance and RBI to explore regulatory changes that could pave the way for setting up family offices in GIFT City, the country s only financial services centre, a person familiar with the matter told ET.
Wealthy Indians are now being allowed to invest in offshore funds in financial centers like Singapore. In the past month, around four ultra-high net worth individuals have been permitted to remit money to foreign funds whose managers are regulated. This development is being closely followed by private wealth managers and financial experts catering to rich clients. Previously, the Reserve Bank of India (RBI) had imposed restrictions on overseas investments, including the requirement that investments in overseas funds be made only in "regulated funds".
In two recent cases, the ED has seized the office space and immovable properties of companies which had used regular banking channels to transfer funds abroad under ODI route. While the companies under question remitted tax paid money and did not use hawala operators, they nonetheless faced harsh actions for using the ODI window to buy properties for personal use and hold funds abroad in an outfit that apparently had no bona fide business activity
In two recent cases, the ED has seized the office space and immovable properties of companies which had used regular banking channels to transfer funds abroad under ODI route. While the companies under question remitted tax paid money and did not use hawala operators, they nonetheless faced harsh actions for using the ODI window to buy properties for personal use and hold funds abroad in an outfit that apparently had no bona fide business activity