With the growing stress on climate change, foreign institutional investors (FIIs) and private equity investors will soon take investment decisions based on the socio-environmental performance of domestic companies. Globally, the trend is already visible with the Carbon Disclosure Project with nearly $60 billion assets under management evaluating companies against the criteria of triple bottom line (environmental, social and economic parameters). Responding to calls from investors, the Johannesburg Stock Exchange launched the first of its kind exchange in an emerging market, the Socially Responsible Investment (SRI) index where it lists companies, which meet certain socio-environmental criteria, and are also evaluated on these parameters. The earnings to India from carbon credit is pegged between $0.5 billion to up to $1 billion per annum depending on how the carbon prices move, for the next 10-15 years   more »

Foreign private equity (PE) firms may be in for a jolt. If the government has its way, PE funds will not be allowed to invest in Indian retail companies which are franchisees of foreign brands. They will not even get to invest in retail companies where foreign investment is allowed. Currently, the Indian government allows global brands to invest up to 51% in Indian retail companies provided they sell all products in their outlets under a single brand. However, PEs will not get to invest even in this category because only the owner of the global brand is permitted to invest in the Indian company. The one exception to this may be food and beverage retail where 100% FDI is allowed. Whether foreign private equity funds can invest in retail companies, franchisee-led or foreign-owned, has been a grey area.   more »