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Appointments in various Financial Institutions (National & International)

Appointments

Name of the Person Designation

Shikha Sharma Advisor to Google Pay India
Krishnan Ramachandran MD & CEO of Max Bupa Health Insurance
Ashok Michael Pinto US Representative to the International Bank for
Reconstruction and Development.
Lakshminarayanan Duraiswamy Managing Director of the Sundaram Home Finance
BP Kanungo RBI Deputy Governor (Term Extended)
Parag Raja MD & CEO of Bharti AXA Life Insurance
Anamika Roy Rashtrawar MD & CEO of IFFCO Tokio General Insurance
Mahabaleshwara M S MD & CEO of Karnataka Bank (reappointed)
Vineet Arora MD & CEO of Paytm General Insurance Ltd.
Ajay Mahajan MD & CEO of CARE Ratings
N Kamakodi MD & CEO of City Union Bank Ltd
Hardayal Prasad MD & CEO of PNB Housing Finance
Kamran Rizvi MD and chairman of HUDCO

Ajay Bhushan Pandey Finance Secretary

Krishan Mohan Prasad and Satish Kumar Gupta Members of the Central Board of Direct Taxes
(CBDT) Board
Ajit Kumar Chairman of Central Board of Indirect Taxes and
Customs (2020)
Rajesh Kumar MD & CEO of TransUnion Cibil
M. Rajeshwar Rao Deputy Governor of the Reserve Bank of India
(RBI)
Arvind Krishna Chief Executive Officer (CEO) of International
Business Machines Corporation (IBM) (2020)
Matam Venkata Rao Managing Director (MD) & Chief Executive Officer
(CEO) of Canara Bank (2021)
Sanjiv Chadha Managing Director (MD) & Chief Executive Officer
(CEO) of Bank of Baroda (2020)
Atanu Kumar Das Managing Director (MD) & Chief Executive
Officer(CEO) of Bank of India (2020)
Ashwani Bhatia Managing Director of the State Bank of India
(2020)

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Rajkiran Rai G Chief Executive Officer (CEO) of the Indian Banks’

Association (IBA) (2020)
Shri G P Garg SEBI Executive Director (2020)
Soma Roy Burman Controller General of Accounts (CGA)
Girish Chandra Chaturvedi National Stock Exchange Chairman
Masatsugu Asakawa President of Asian Development Bank (ADB)
Devesh Srivastava Chairman and Managing Director (MD) at the
General Insurance Corporation India (GIC Re)
Uday Shankar President of the Federation of Indian Chambers of
Commerce & Industry (FICCI) for 2020-21
Niranjan Hiranandani New President of The Associated Chambers of
Commerce & Industry of India (Assocham)
TV Somanathan Expenditure Secretary in the Finance Ministry
Amit Talgeri Chief Risk Officer (CRO) of Axis Bank
Surjit S Bhalla Executive Director of the International Monetary
Fund for India
SS Mallikarjuna Rao Managing Director (MD)and Chief Executive of the
Punjab National Bank(PNB)
Sudhaker Shukla Whole-Time Member, Insolvency and Bankruptcy
Board of India (IBBI)
Christine Lagarde New Chief of the European Central Bank
Tuhin Kanta Pandey Secretary of the Department of Investment and
Pubic Asset Management (DIPAM)
Anshula Kant Managing Director of World Bank Group
Kristalina Georgieva Managing Director of the International Monetary
Fund
John Kofi Mensah Managing Director of the Agricultural
Development Bank, (ADB)
Dinesh Kumar Khara New Chairman of State Bank of India
Charanjit Singh Attra New Chief Financial Officer (CFO) of SBI
J Venkatramu Managing Director and Chief Executive Officer of
India Post Payments Bank (IPPB).
Simanchala Dash Advisor to Executive Director, International
Monetary Fund (IMF) in Washington.
AK Dixit New administrator of the PMC Bank by RBI

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T. N. Manoharan Administrator of the crisis-ridden Laxmi Vilas Bank

by RBI
Kris Gopalakrishnan First Chairperson of Reserve Bank Innovation Hub
Uma Shankar Additional Director (Non-Executive, Independent)
of Karnataka Bank

Foreign Investments in India

➢ Foreign investment refers to the investment in domestic companies and assets of a country by a
foreign investor with a view to spread their business and to earn profit in a nation.
➢ In other words, we can say that Foreign investment is when a company or individual from one nation
invests in assets or ownership stakes of a company based in another nation.
➢ Overall, foreign investment in a country is a good sign that often leads to economic growth with
increase in jobs and income. We have come up with a detailed explanation of Foreign Investment in
India.

Foreign investment is broadly categorized into two types:

1. Foreign Direct Investment (FDI): Foreign Direct Investment (FDI) is the net inflow of investment that
involves foreign funds into an enterprise operating in a different country of origin from the financier.
Foreign direct investment has developed as a major form of international capital transfer since last few
years. It is the best form of foreign investment due to its longevity, stability and far reaching objectives.
In long term it brings growth, generate employment and fuels economic activities. It is basically a form
of controlling ownership in a business in one country by an entity based in another country

FDI flow increased world-wide between 1980 and 1990 to triple of its normal value. FDI doesn’t increased
automatically and evenly across countries, sectors and local communities. They are the contribution of national
strategies and the international investment architecture attracting FDI to huge number of developing
countries.

FDI is further classified into three categories:

(1) Green Feild FDI: When investment is made in new projects.

(2) Brown Field FDI: When investment is made in vender developed or underutilised projects.

(3) Acquisition and Merger (A&M)

Catalyst of FDI in Host Country:

There are various factors that drive FDI in a country. Some of them are:

• Policy framework for F.D.I

• Economic, political & social stability
• Rules regarding entry & operations
• Standards of treatment of foreign affiliates
• Policies on functioning & structure of markets (esp. competition & merger and acquisition [M&A]
Policies
• International agreements on FDI
• Privatization Policy
• Trade policy (barriers-tariff & non-tariff) and coherence of FDI and trade policies

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During recent past years the issues of FDI in few sectors were in controversy. They are

• FDI in multi-brand retail sector

• FDI in civil aviation sector
• Increasing the limit of FDI in insurance sector
• Government ’s slow process of decision making
• GAAR issues
• Round Tripping FDI
• Double taxation avoidance agreement (DTAA)

Note: Round Tripping of FDI is where domestic funds comeback into India as FDI money without any
incremental flow of funds into the country. It is a common system of tax evasion where an investor using the
tax holiday advantage in Mauritius or some other country with which India has a double Taxation Agreement
to take money out of India only to bring it back disguised as foreign investment.

Advantages of FDI

• It helps in supplementing domestic savings of the developing economy to undertake high level of
investment.
• It couples with technology and training which fills the technological gap.
• It leads to strengthen balance of payment.
• A country is not required to borrow commercially, and debit trap is avoided.
• It leads to better infrastructure and creates employment.

Disadvantages of FDI

• FDI leads to a situation of crony capitalism.

• It may create volatility and speculation in the capital market.
• It may create structure mismatch in the lending and borrowing system which can cripple the economy.
• It can make a country dependant on the foreign capital etc.

Major Regulating authority for FDI in India

• Department of Industrial Policy and Promotion (DIPP), Government of India

• Foreign Investment Promotion Board of India (FIPB), Government of India
• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
• Directorate General of Foreign Trade (DGFT), Government of India
• Ministry of Corporate Affairs, Government of India
• Income Tax Department
• Industry specific ministries such as Ministry of Power, Ministry of Communications & Information
Technology

Forms of FDI in India:

FDI is permitted through following forms of investments:

• Financial collaborations.
• Joint ventures and technical collaborations.
• Capital markets via Euro issues (Foreign Currency Convertible Bonds (FCCBs)/Equity Shares under the
Global Depository Mechanism).
• Private placements or preferential allotments.

2. Foreign Portfolio Investment: Foreign portfolio investment (FPI) comprises of securities and other
financial assets held by investors in another country.

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➢ It does not provide the investor with direct ownership of a company's assets and is relatively
liquid depending on the volatility of the market.
➢ Along with foreign direct investment (FDI), FPI is a way of investing in an overseas economy.
FDI and FPI are both important sources of funding for most economies.
➢ Portfolio investments encompass securities transactions that are highly liquid, i.e. they can be
bought and sold very fast.
➢ A portfolio investment is an investment by an investor who is not involved in the management
of an organization.
➢ It involves the purchase of stocks, bonds, commodities, or money market instruments that
are based in a different country.
➢ Sometimes, these types of investments are short-term in nature, allowing the investor to
quickly take advantage of favourable exchange rates to buy and sell the assets while the other
times, FPI is acquired with plans of holding onto the asset for an extended period of time.

Recent Updates on FDI

Some of the latest significant FDI announcements are as follows:

• Government of Singapore announced investment of Rs 450 crore (US$ 63.84 million) in the
qualified institutional placement (QIP) offering of mall developer Phoenix Mills Ltd in August 2020.
• Jio Platforms Ltd. sold 25.24% stake worth Rs 1.52 trillion (US$ 21.57 billion) to various global
investors from separate deals involving Facebook, Silver Lake, Vista, General Atlantic, Mubadala,
Abu Dhabi Investment Authority (ADIA), TPG Capital, L. Catterton, Public Investment Fund (PIF),
Intel Capital, Qualcomm Ventures and Google. This is the largest continuous fundraise by any
company in the world.
• Amazon India announced investment of US$ 1 billion for digitising small and medium businesses
and creating one million jobs by 2025 in January 2020
• Mastercard also announced its plans to invest up to US$ 1 billion in India over the next five years
to double its research and development effort in the Indian market.
• In August 2019, Reliance Industries (RIL) announced one of India's biggest FDI deals with Saudi
Aramco to buy a 20% stake in Reliance's oil-to-chemicals (OTC) business at an enterprise value of
US$ 75 billion.

Government FDI Initiatives

• Government increased FDI in defence manufacturing under the automatic route from 49% to
74% in May 2020.
• Government amended existing consolidated FDI policy for restricting opportunistic takeovers or
acquisition of Indian companies from neighbouring nations in April 2020
• In March 2020, Government permitted non-resident Indians (NRIs) to acquire up to 100% stake
in Air India.
• In December 2019, Government permitted 26% FDI in digital sectors in December 2019
• Government permitted 100% FDI under the automatic route in coal mining for open sale (as well
as in developing allied infrastructure like washeries) in 2019
• Government of India proposed opening FDI in aviation, media (animation, AVGC) and insurance
sectors in consultation with all stakeholders during Union Budget 2019-20.
• Insurance sector is permitted 100% FDI
• Government of India released the Draft National E-Commerce Policy to encourage FDI in the
marketplace model of E-commerce. Further, it stated that the FDI policy for E-commerce sector
was developed to ensure a level playing field for all participants.