US shutdown casts its shadow on Indian firms

THE CONTINUING SHUTDOWN of the US government is having a ripple effect on corporate activity for Indian companies with American exposure, as curtailed operations at agencies delay clearances and filings required for cross-border actions.

- URVI MALVANIA

Infosys and Hindalco are among those now facing procedural holdups as the Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS) are operating with limited staff.

Infosys, which announced an ₹18,000-crore share buyback in early September, has yet to declare a record date for the exercise, though both shareholder approval and the SEC’s exemptive relief were obtained by mid-month.

The board cleared the buyback on September 11, and the SEC granted procedural exemptions the following day.

According to industry experts, the ongoing shutdown will not derail the process but could stretch timelines.