| Log in

Govt Defers Orix Corporation’s FDI Proposal; Dubs It As Round-Tripping

04 July, 2009
  • The Department of Revenue, part of the Finance Ministry of India,has objected to a proposal by Japan-based Orix Corporation to invest in an Indian trust. The IL&FS Orix Trust, which bought 2% stake in Multi Commodity Exchange, was to issue units to Mauritius-based Orix
    Mauritius Trade Winds Investment Company.
     
    The proposal is facing objections as the department of revenue belives that the proposal is
    taking advantage of the India-Mauritius Double Taxation Avoidance Agreement, reports Economic Times.
     
    The department has dubbed the investment as round-tripping – capital belonging to a country, which leaves the country & then is reinvested in the form of FDI.
     
    The Foreign Investment Promotion Board (FIPB), the nodal body for clearing foreign investment into India, has deferred the proposal. IL&FS Orix Trust still has to register as a venture capital fund with market regulator SEBI and does not have any foreign equity participation. The investment in MCX was done by Infrastructure Leasing & Financial Services (IL&FS).
     
    ORIX, Japan’s largest leasing and diversified financial services conglomerate, has a presence in 24 countries. Orix is an investor in IL&FS and also has a joint venture with infrastructure lender named Orix Auto Infrastructure Services that provides vehicle leasing and
    construction equipment financing services.
     

 


Leave Your Comment
FIPB Rejects PE Fund's Proposal To Raise $135M From Mauritius

FIPB Rejects PE Fund’s Proposal To Raise $135M From Mauritius

Madhav A Chanchani 9 years ago
The proposal of Forum Synergies (India) PE Fund Managers, which was in the...
India to tax capital gains under revised Mauritius treaty

India to tax capital gains under revised Mauritius treaty

TEAM VCC 2 years ago
India will get the right to tax capital gains on investments after April 2017...
Forum Synergies PE Gets Nod For $135M FDI

Forum Synergies PE Gets Nod For $135M FDI

Forum Synergies (India) PE Fund Managers, a Bangalore-based private equity firm,...
No Comments

Govt Defers Orix Corporation’s FDI Proposal; Dubs It As Round-Tripping

Powered by WordPress.com VIP