{"id":3480,"date":"2019-07-05T11:40:18","date_gmt":"2019-07-05T11:40:18","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=3480"},"modified":"2023-10-26T06:00:19","modified_gmt":"2023-10-26T06:00:19","slug":"budget-2019-whats-looking-good-for-investors","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/budget-2019-whats-looking-good-for-investors\/","title":{"rendered":"Budget 2019: What\u2019s Looking Good For Investors?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Finance Minister Nirmala Sitharaman announced the Union Budget<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2019 with considerable emphasis being laid on extending additional support to attract foreign investments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The budget proposed the idea of e-verification mechanism wherein the identity of an investor and the source of funds can be ascertained. The move will eliminate any scrutiny from the IT department. Let\u2019s take a look into how the Budget 2019 looks for investors:<\/span><\/p>\n<h2><b>Encouraging Foreign Investments<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The focus on investments in budget 2019 is sure to attract diverse investments from all quarters with the government relaxing existing norms and bringing in favourable initiatives to facilitate investors.<\/span><\/p>\n<p><strong>Some of the key highlights include:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Government plans structural reforms to promote foreign and domestic investment.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">FPIs to subscribe to listed debt papers of ReITs and InvITs.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Proposal to increase FPI investment in a company to sectoral foreign investment limit statutory limit to 24% for with an option of limiting the lower threshold by concerned corporates.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Allowing FPIs, FIIs to invest in debt papers of NBFCs.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Merging of non-resident portfolio schemes with foreign portfolio investment route.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">100% FDI will be allowed for insurance intermediaries.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Streamlining KYC norms for foreign portfolio investors.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Loosening restrictions for FDI in aviation, media, animation and insurance intermediaries<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Hike in statutory limits for foreign investments in some companies<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Favourable measures to boost International Financial Service Centres (IFSCs)<\/span><\/li>\n<\/ul>\n<h2><b>Favouring the NRIs<\/b><b>&nbsp;<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The budget was instrumental in announcing beneficial policies for NRIs who can now make use of the opportunities to invest in India irrespective of the nationality.<\/span><\/p>\n<p><strong>Some of the key highlights that stand out include:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Merging NRI portfolio route with FPI route to increase more NRI portfolio flows into the country.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">Aadhaar card for NRIs with Indian passports to be issued post their arrival in India, without waiting for the mandatory 180 days.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-weight: 400;\">NRI port for seamless access to Indian equities<\/span><\/li>\n<\/ul>\n<h2><b>Government holding in PSUs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Government stake in PSUs can dip below the current mandate of 51 per cent but will be reviewed on a case-to-case basis. To provide additional investment space, the Government would realign its holding in CPSEs, including Banks to permit greater availability of its shares and to improve the depth of its market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from these, the budget proposal also included the prioritisation of continuation of disinvestment of public sector enterprises and monetisation of the land of public enterprises. Moving forward, trading in corporate bonds shall become user-friendly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regarding the angel tax issue, the Finance Minister has made it clear that start-ups and investors who file requisite declarations will no more be subjected to any scrutiny in respect of valuation of share premium.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finance Minister Nirmala Sitharaman announced the Union Budget 2019 with considerable emphasis being laid on extending additional support to attract foreign investments. The budget proposed the idea of e-verification mechanism wherein the identity of an investor and the source of funds can be ascertained. The move will eliminate any scrutiny from the IT department. Let\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6016,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[137],"class_list":["post-3480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investor","tag-investor"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/3480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=3480"}],"version-history":[{"count":1,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/3480\/revisions"}],"predecessor-version":[{"id":13848,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/3480\/revisions\/13848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/6016"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=3480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=3480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=3480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}