Tag: foreign investment

  • FCC Opens Door for Foreign Investors in Paramount-Warner Bros. Acquisition

    FCC Opens Door for Foreign Investors in Paramount-Warner Bros. Acquisition

    The U.S. Federal Communications Commission (FCC) has approved a request from Paramount Skydance that permits foreign investors to provide funding for its planned acquisition of Warner Bros. Discovery. This decision clears another regulatory hurdle for the massive $110 billion deal, which includes debt.

    Foreign Investors to Hold Non-Voting Equity

    Under the approved structure, foreign investors can collectively hold a substantial share of Paramount’s nonvoting equity. Major investors include the Saudi Arabia Public Investment Fund, Abu Dhabi-based L’Imad Holding, and the Qatar Investment Authority. It is expected that these international entities will hold approximately 49.5% of the company’s nonvoting shares. Meanwhile, the Ellison family and RedBird Capital Partners will maintain control of voting shares.

    The FCC also authorized certain foreign investors to increase their individual equity stakes within specified limits, subject to agency rules.

    Restrictions on Foreign Influence

    The approval comes with conditions designed to prevent foreign investors from gaining control over Paramount’s operations. According to the FCC decision, these investors will not receive voting rights or governance powers, nor can they influence management or content decisions. Additionally, they are barred from accessing nonpublic information involving U.S. citizens.

    The arrangement follows a national security review by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, commonly known as Team Telecom. Paramount argued that the additional capital would strengthen its ability to invest in broadcasting, news gathering, and content, helping the combined company compete in the global media market.

    Warner Bros Deal Still Faces Legal Hurdle

    While the FCC decision removes one obstacle, the transaction is far from complete. The proposed merger still faces legal challenges from a group of U.S. states and other parties. Although the U.S. Justice Department and regulators in several other jurisdictions have cleared the deal, litigation remains pending, with a trial expected in March 2027.

    The FCC’s ruling marks another step toward the proposed combination, but its completion still depends on the outcome of the remaining legal proceedings and other closing conditions.

  • Odisha Chief Minister Launches UAE Investment Roadshow in Abu Dhabi and Dubai

    Odisha Chief Minister Launches UAE Investment Roadshow in Abu Dhabi and Dubai

    Odisha Chief Minister Mohan Charan Majhi has embarked on a three-day investment roadshow in the United Arab Emirates, covering Abu Dhabi and Dubai. The visit, his second international investment outreach, aims to attract global capital and showcase Odisha’s industrial opportunities.

    Majhi will meet with UAE government officials, sovereign investment funds, institutional investors, and business leaders. The Odisha government will present the state’s industrial policies, infrastructure, and investment-ready projects to companies operating in the Gulf region.

    Abu Dhabi Meetings

    The chief minister’s program begins in Abu Dhabi, where he will hold a roundtable with International Holding Company (IHC), a major Abu Dhabi-based investment group. He is also scheduled to meet UAE Minister of Investment Mohamed Hassan Alsuwaidi and representatives of sovereign investment funds. The Odisha delegation plans to sign Memoranda of Cooperation to strengthen business ties with UAE institutions.

    Before the trip, Majhi stated, “Our vision is clear: to make Odisha the first choice for investors seeking opportunity, stability and sustainable growth.” He added that the state would use the UAE visit to expand engagement with international investors.

    Dubai Events

    After Abu Dhabi, Majhi will travel to Dubai for direct meetings with company executives and prospective investors. Discussions will focus on potential investment projects and industrial partnerships. He will also attend the Odisha Investors’ Meet in Dubai on September 11, bringing together investors, business representatives, and officials to explore sector opportunities. Additionally, Majhi will engage with the Odia diaspora in the UAE as part of the state’s broader outreach.

    Investment Opportunities

    During the meetings, the Odisha government will showcase its investment-ready projects, industrial infrastructure, and policy support. Officials will discuss emerging sectors seeking domestic and foreign investment. Majhi emphasized, “With a strong focus on EoDB, investor confidence, enabling policies and faster project execution, we are creating an ecosystem where businesses can invest, grow and thrive.”

    The state expects the UAE meetings to open further discussions with companies and investment institutions interested in India, while exploring opportunities to increase trade and industrial cooperation between Odisha and the UAE.

    Senior officials including Industries Minister Sampad Chandra Swain and Chief Secretary Anu Garg are part of the delegation. The UAE outreach concludes on September 12, after which Majhi will return to Odisha.

  • India Passes 2026 Tax Amendment Bill: Incentives for Foreign Investors, Electronics, and Data Centers

    India Passes 2026 Tax Amendment Bill: Incentives for Foreign Investors, Electronics, and Data Centers

    The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, introducing a series of changes designed to attract foreign investment, strengthen India’s electronics manufacturing ecosystem, and create a more flexible framework for digital payments.

    The Bill amends provisions in the Income-tax Act, 2025, the Finance Act, 2026, and the Payment and Settlement Systems Act, 2007. It also replaces the Income-tax (Amendment) Ordinance, 2026. While much of the attention has focused on the possibility of future charges on UPI transactions, the legislation also includes tax incentives for foreign investors, data centres, electronics manufacturing, and the diamond industry.

    FDI, Electronics and Data Centres Get Tax Boost

    One of the Bill’s key features is the extension of tax incentives for foreign companies involved in electronics manufacturing. Eligible overseas firms supplying components through bonded warehouses to Indian manufacturers will continue to receive tax benefits until March 31, 2041. The legislation also eases tax rules for foreign-owned data centres by removing certain notification requirements and expanding eligibility to leased facilities, a move expected to encourage investment in India’s fast-growing digital infrastructure sector.

    Additionally, foreign institutional investors (FIIs) and the Bank for International Settlements (BIS) will receive tax relief on interest income and capital gains from investments in government securities, a measure aimed at attracting more global capital.

    UPI Provision Creates Flexibility, Not Immediate Charges

    The new provision in the Payment and Settlement Systems Act has attracted considerable attention since it gives the central government the discretion to determine which digital modes of payment will not incur any charges. However, the Bill does not immediately introduce any charges on UPI or reinstate the merchant discount rate (MDR). It provides the necessary provisions for the government to bring about such changes at a later point if needed, through a separate government notification.

    What It Means for Businesses and Investors

    The bill is expected to support various industries through reduced tax uncertainty and long-term policies. The manufacturing industry, cloud service providers, international investment firms, and companies working in special economic sectors can be provided with incentives for expanding their businesses in India. These changes might boost India’s status as an ideal place to manufacture goods, build digital infrastructure, and invest, creating jobs in the long run.

    Consumers will not directly experience any changes since no digital payments taxes have been announced. The bill provides the government with enough room for more flexible policies and the continued execution of its tax reforms and industry growth approach. Businesses and investors should watch for further amendments through regulations and notifications.

  • India Unveils Tax Reforms to Lure Offshore Fund Managers and Boost Foreign Investment

    India Unveils Tax Reforms to Lure Offshore Fund Managers and Boost Foreign Investment

    India has proposed significant tax reforms aimed at easing rules for offshore funds managed by Indian-based managers, as part of the Taxation and Other Laws Amendment Bill, 2026. The government says the changes seek to promote fund management activity and provide tax certainty, in a bid to attract foreign capital after recent overseas outflows and rupee pressure.

    The draft bill removes eight of the existing 13 safe harbour conditions, including minimum corpus tests, investor thresholds, ownership caps, and portfolio restrictions. Funds can now appoint India-based managers without triggering a taxable business connection solely through that arrangement. However, five safeguards remain: Indian residents cannot directly hold more than 5% of a fund’s corpus, the fund must remain non-resident, and it cannot control an Indian business.

    Girish Vanvari of Transaction Square noted that the proposal substantially reduces the risk of a taxable connection. Nehal Sampat, a PricewaterhouseCoopers partner, said the measure would help offshore funds hire onshore managers. EY India’s Tejas Desai added that the changes offer more flexibility for global structures. The reforms also support India’s broader push to bring more fund management activity onshore, aligning with Finance Minister Nirmala Sitharaman’s call for more foreign capital.

    In addition, the bill extends tax incentives for electronics contract manufacturing, granting a ten-year extension to the existing five-year exemption through 2040-41. Foreign companies supplying capital goods to Indian electronics manufacturers can use the exemption, and certain component sales through customs-bonded areas qualify. Specified foreign firms trading rough diamonds in notified special zones receive a 15-year tax holiday. Simpler rules for data centres allow eligible facilities to operate through ownership or leasing, reducing procedural steps.

    The bill also replaces a June ordinance for foreign portfolio investors in government securities, exempting qualifying interest income and capital gains from Indian tax. The government circulated the draft among lawmakers and may introduce it in Parliament this week; measures require parliamentary approval before taking effect.

  • India’s Proposed Tax Extension Through 2041 Could Boost Apple’s Manufacturing Expansion

    India’s Proposed Tax Extension Through 2041 Could Boost Apple’s Manufacturing Expansion

    India is considering a significant extension of tax exemptions for foreign electronics companies, a move that could substantially benefit Apple as it ramps up iPhone production in the country. The proposed amendment to tax laws would push the current incentives’ expiration date from 2031 to March 31, 2041, offering long-term fiscal certainty for global manufacturers.

    If approved by both houses of Parliament, the measure would extend tax breaks for foreign companies supplying machinery and components to contract manufacturers. This aligns with India’s broader strategy to solidify its position as a global electronics manufacturing hub, particularly under the ‘Make in India’ initiative.

    Apple Poised to Gain from Extended Tax Relief

    According to reports, Apple stands to benefit the most from this proposal. The tech giant had been seeking clarity on India’s tax regime concerning the supply of expensive equipment to its contractors, as ambiguity exposed it to higher tax risks. Under the proposed reforms, foreign firms supplying equipment used in manufacturing phones, tablets, laptops, wearables, and hearing aids would continue to enjoy tax exemptions until 2041.

    The draft also extends tax relief on income derived from storing and supplying electronic components through customs-bonded facilities, encouraging export-oriented manufacturing.

    India’s Electronics Manufacturing Strategy

    This tax extension is part of the government’s efforts to attract global manufacturers and reduce dependence on China. Apple’s manufacturing footprint in India has grown rapidly, with Counterpoint Research projecting that India will produce 26% of the world’s iPhones in 2026, up from just 6% four years ago. Industry experts believe the extended incentives could prompt more multinational electronics companies to invest in local production facilities and strengthen supplier networks.

    “The proposed tax changes will enable foreign companies to store and transfer critical equipment and components in India for their contract manufacturers, helping mitigate supply chain disruptions arising from trade uncertainties while providing greater tax certainty,” said Riaz Thingna, a partner at Grant Thornton Bharat.

    Wider Business Reforms in the Pipeline

    Beyond electronics, the proposed bills aim to improve India’s overall investment climate. For instance, foreign companies using data centers in India to serve global clients would no longer be required to own those facilities, but could lease them instead. Additionally, the bills recommend a 15-year tax exemption for foreign diamond miners and dealers operating through designated trading zones. Analysts say these measures are designed to enhance ease of doing business and provide long-term policy certainty for international investors.

    All these changes are subject to parliamentary approval and would take effect only after the bills are passed.

  • Swiggy Shares Slip to Rs 273.29 as Foreign Ownership Dips Below 50%, Analysts Eye Long-Term Gains

    Swiggy Shares Slip to Rs 273.29 as Foreign Ownership Dips Below 50%, Analysts Eye Long-Term Gains

    Swiggy shares ended Friday at Rs 273.29 on the NSE, down 2.73% from the prior close, as profit-taking followed a recent rally. Despite the dip, the stock remains in focus after the company disclosed that foreign shareholding fell below the critical 50% threshold, a shift analysts believe strengthens its long-term prospects.

    Key Ownership Milestone

    Swiggy informed stock exchanges that total foreign shareholding has dropped to 49.76%, with domestic holdings rising to 50.24%. Crossing this mark makes Swiggy eligible for Indian-Owned and Controlled Company (IOCC) status under FEMA guidelines. While the change does not immediately affect operations, it grants greater regulatory flexibility, especially in sectors with foreign investment caps.

    Market Response and Profit Booking

    The ownership news initially sparked aggressive buying earlier in the week, pushing the stock into bullish technical territory with high volumes. However, Friday’s decline suggests traders are locking in gains after the sharp run-up. Analysts view this as a normal correction following news-driven moves.

    Technical Indicators Improve

    From a chart perspective, Swiggy is showing signs of base formation after months of weakness. Sustained buying will be needed to confirm a stronger upward trend, but momentum indicators are improving.

    Quick Commerce Remains Key Growth Driver

    Beyond ownership changes, Swiggy’s long-term appeal hinges on its expanding quick-commerce ecosystem. The company continues to invest heavily in Instamart, dark stores, and logistics to compete with Blinkit and Zepto. India’s online grocery and food delivery market is growing in both user base and order value.

    Risks to Watch

    Swiggy operates in one of India’s most competitive internet markets. Key risks include:

    • Ongoing pricing pressure from rivals
    • High capital expenditure on dark stores
    • Lagging profitability due to aggressive growth
    • Elevated market expectations after the recent bounce
    • Potential impact on consumer discretionary spending

    Outlook

    Swiggy’s shift to majority Indian ownership gives it strategic freedom and strengthens its position in the digital commerce landscape. While Friday’s fall reflects profit-taking, the broader narrative remains intact. If the company balances growth with improving profitability, it could emerge as a compelling long-term bet in India’s consumer tech space. Analysts will closely watch upcoming quarterly results and quick-commerce execution.

  • Swiggy Stock Surges 6% as Domestic Ownership Crosses 50% Mark

    Swiggy Stock Surges 6% as Domestic Ownership Crosses 50% Mark

    Swiggy’s share price jumped nearly 6% on Tuesday after the company disclosed that foreign investment had fallen below 50%, pushing domestic ownership above that critical threshold. The news boosted investor confidence and sent the stock to an intraday high of around ₹267 before closing at ₹264 on the BSE. Despite the rally, the stock remains well below its 52-week high of ₹473, and its 52-week low of ₹235.85, recorded in June 2026.

    Shareholding Structure Shift

    In a stock exchange filing dated July 7, 2026, Swiggy reported that total foreign investment—including foreign direct investment, foreign portfolio investment, and other indirect holdings—stood at 49.76% as of July 6. Consequently, domestic ownership rose to 50.24%. The update follows a failed attempt by the company to amend its Articles of Association, a move that required 75% shareholder approval but received only 72.36%. Despite that setback, Swiggy reiterated that achieving Indian Owned and Controlled Company (IOCC) status remains a key long-term objective.

    Why This Matters

    Domestic ownership exceeding 50% is a significant milestone for Swiggy. It brings the company closer to qualifying as an IOCC under Indian regulations, which could grant Instamart—Swiggy’s quick-commerce arm—greater flexibility to operate an inventory-based model. This shift may improve operational efficiency and support better profit margins over time. The company clarified that the latest disclosure does not alter its ownership structure, management, voting rights, share capital, or daily operations; it merely informs investors of the updated foreign investment level.

    Market Reaction and Outlook

    The market welcomed the development, though the stock still faces headwinds. Swiggy’s share price has gained about 5% over the past month but declined 27% in the last six months and remains roughly 20% lower year-over-year. Investors are now watching for further updates on the IOCC process, which requires additional legal and regulatory steps. The company’s long-term stock performance will ultimately depend on business growth, improved earnings, and stronger results from both its food-delivery and Instamart segments.