bd_4_ever
SENIOR MEMBER
- Joined
- Nov 29, 2009
- Messages
- 2,458
- Reaction score
- 0
- Country
- Location
Bangladeshi investment proposals under Indian security lens
Proposals coming from Bangladeshi firms and individuals to invest in India are being subjected to rigorous scrutiny by security agencies of that country, according to a recent online report posted by Ashish Sinha.
In recent past, according to the report, at least half-dozen proposals involving Bangladeshi firms have come before the Foreign Investment Promotion Board (FIPB) which are yet to get the nod. Obtaining the mandatory security clearances for such proposals is a time-consuming process and that is the main reason why such proposals have not been able to obtain the nod from the government.
Authorities have to perform checks at several levels including background checks on the promoters, shareholders, etc to ensure that there is no involvement of any nationals from Pakistan at the backend of these Bangladeshi firms, the online report quoting a government source said.
This is because Pakistani nationals or companies incorporated in Pakistan cannot invest in India.
For FDI from Bangladesh, it says a citizen of Bangladesh or an entity incorporated in Bangladesh can invest in India under the FDI Policy, only under the government route. Which means, it is mandatory for proposals from Bangladesh to go to the FIPB. In a recent FIPB meeting, an Indian company seeking investments from Bangladesh had to provide an undertaking that there was no direct or indirect investment from individuals from Pakistan in any of its companies.
Also, the home ministry has to examine the proposals from political angle for any future political ramifications, which delays the clearances to such proposal, the report said. But the government is concerned by the growing instances of Bangladeshi firms trying to enter India by setting up joint ventures.
As a result of the exhaustive security clearances, the Indian companies seeking such alliances also have to wait. Currently, proposals from Indian companies like Southern CNG from Kolkata and Pran Beverages, also from Kolkata are stuck for over six months with the FIPB, the report said.
However, there are also direct proposals from Bangladeshi firms seeking permission to set up subsidiaries in India. These include proposals from Bangladeshi nationals like M Rezaul Hassan and Monnujan Nargis who want to set up an Indian firm to undertake software development. Then there is a proposal from Rahimafrooz Batteries of Bangladesh which wants to undertake import and wholesale distribution of batteries and its servicing from Bangladesh, the report added.
Bangladeshi investment proposals under Indian security lens
Proposals coming from Bangladeshi firms and individuals to invest in India are being subjected to rigorous scrutiny by security agencies of that country, according to a recent online report posted by Ashish Sinha.
In recent past, according to the report, at least half-dozen proposals involving Bangladeshi firms have come before the Foreign Investment Promotion Board (FIPB) which are yet to get the nod. Obtaining the mandatory security clearances for such proposals is a time-consuming process and that is the main reason why such proposals have not been able to obtain the nod from the government.
Authorities have to perform checks at several levels including background checks on the promoters, shareholders, etc to ensure that there is no involvement of any nationals from Pakistan at the backend of these Bangladeshi firms, the online report quoting a government source said.
This is because Pakistani nationals or companies incorporated in Pakistan cannot invest in India.
For FDI from Bangladesh, it says a citizen of Bangladesh or an entity incorporated in Bangladesh can invest in India under the FDI Policy, only under the government route. Which means, it is mandatory for proposals from Bangladesh to go to the FIPB. In a recent FIPB meeting, an Indian company seeking investments from Bangladesh had to provide an undertaking that there was no direct or indirect investment from individuals from Pakistan in any of its companies.
Also, the home ministry has to examine the proposals from political angle for any future political ramifications, which delays the clearances to such proposal, the report said. But the government is concerned by the growing instances of Bangladeshi firms trying to enter India by setting up joint ventures.
As a result of the exhaustive security clearances, the Indian companies seeking such alliances also have to wait. Currently, proposals from Indian companies like Southern CNG from Kolkata and Pran Beverages, also from Kolkata are stuck for over six months with the FIPB, the report said.
However, there are also direct proposals from Bangladeshi firms seeking permission to set up subsidiaries in India. These include proposals from Bangladeshi nationals like M Rezaul Hassan and Monnujan Nargis who want to set up an Indian firm to undertake software development. Then there is a proposal from Rahimafrooz Batteries of Bangladesh which wants to undertake import and wholesale distribution of batteries and its servicing from Bangladesh, the report added.
Bangladeshi investment proposals under Indian security lens
