Pricing of MOA Subscription Shares

It has been decided that in cases, where non-residents (including NRIs) make investment in an Indian company in compliance with the provisions of the Companies Act, 1956, by way of subscription to Memorandum of Association, such investments may be made at face value subject to their eligibility to invest under the FDI scheme. Pricing of Subscription Shares is at par value

Disclaimer:
Proteus Consultants and I are not responsible for any and all losses, claims, damages and liabilities arising out of or related to following anything that may be posted in this blog. If you rely upon anything posted here, you do so at your sole risk and responsibility.

CHANGE IN REPORTING REQUIREMENT FOR PO/LO/BO

The Reserve Bank of India has made an addition to the reporting requirements of Project Office (PO), Liaison Office (LO) and Branch Office (BO). In addition to the Annual Activity Certificate, a report containing the following information shall also be filed with DGP concerned as well as the AD bank. In addition, this report shall also be filed with the DGP within 5 working days of establishment of the PO/LO/BO in any state.

1. Details of the Foreign Entity
a. Name
b. Address
c. Date and Place of Incorporation
d. E-mail ID or Web address

2. Details of Office in India
a. Type of Office – Liaison Office /
Branch Office / Project Office or
for others indicate type
b. Address
c. Contact Number
d. Date of opening of Office

3. Head of Office in India
a. Name
b. Nationality
c. Designation
d. Address
e. Passport Particulars
i. Passport Number
ii. Place of Issue
iii. Date of Issue
iv. Date of Expiry
v. Any other relevant
information
f. E-mail address
g. Land line number
h. Mobile number

4. Whether all foreign nationals employed at Liaison/Branch/Project Offices are on E Visas.
If not, indicate details of such foreign nationals.

5. Whether the foreign nationals on Evisas have reported to mandatory authorities i.e. Police Station etc. If not, name of such nationals / nationality along with relevant details and reasons for not complying with requirement

6. List of Personnel employed, including foreigners in India Office

7. List of foreigners other than employees who visited Indian Office in connection with the activities of the company with details.

8. Projects/ Contracts/Collaborations worked upon or initiated during the year along with details

9. List of equipment imported for business activities in India

10. Details of suppliers or services rendered to the Government Sector.

11. Details of places / states visited along with dates, accommodation used.

12. Details of contact with Government Departments / PSUs including names of officials

13. Details of contact with Civil Society Bodies / Trusts / Non-Government Organisation.

Disclaimer:
Proteus Consultants and I are not responsible for any and all losses, claims, damages and liabilities arising out of or related to following anything that may be posted in this blog. If you rely upon anything posted here, you do so at your sole risk and responsibility.

OVERSEAS DIRECT INVESTMENTS BY INDIAN PARTY-RATIONALISATION

RBI/2012-13/203
A.P. (DIR Series) Circular No. 29
September 12, 2012

To,
All Category – I Authorised Dealer Banks

Madam / Sir,

Overseas Direct Investments by Indian Party – Rationalisation
Attention of the Authorised Dealer (AD – Category I) banks is invited to the Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to time. It has been decided to amend the guidelines relating to submission of Annual Performance Report (APR) as under:

2. An Indian party, which has set up / acquired a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) overseas in terms of the Regulations of the Notification ibid, shall submit, to the designated Authorised Dealer every year, an Annual Performance Report (APR) in Form ODI Part III in respect of each JV or WOS outside India and other reports or documents as may be specified by the Reserve Bank from time to time, on or before the 30th of June each year. The APR, so required to be submitted, has to be based on the latest audited annual accounts of the JV / WOS, unless specifically exempted by the Reserve Bank.

3. The exemption granted for submission of APR based on the un-audited accounts of the JV / WOS subject to the terms and conditions as specified in the A.P (DIR Series) Circular No. 96 dated March 28, 2012 shall continue.

4. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 are being issued separately.

5. AD – Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager-In-Charge

Disclaimer:
Proteus Consultants and I are not responsible for any and all losses, claims, damages and liabilities arising out of or related to following anything that may be posted in this blog. If you rely upon anything posted here, you do so at your sole risk and responsibility.

OVERSEAS INVESTMENT BY INDIAN PARTIES IN PAKISTAN

RBI/2012-13/198
A. P. (DIR Series) Circular No. 25
September 7, 2012

To
All Category – I Authorised Dealer Banks

Madam / Sir,

Overseas Investment by Indian Parties in Pakistan

Attention of the Authorised Dealer (AD – Category I) banks is invited to the Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to time.

2. In terms of Regulation 6 (2) of the Notification ibid, “Notwithstanding anything contained in these Regulations, investment in Pakistan shall not be permitted.” It has now been decided that the overseas direct investment by Indian Parties in Pakistan shall henceforth be considered under the approval route under Regulation 9 of the Notification, ibid.

3. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security), Regulations, 2004 are being issued separately.

4. AD – Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,
Dr. (Smt.) Sujatha Elizabeth Prasad
Chief General Manager-In-Charge

Disclaimer:

Proteus Consultants and I are not responsible for any and all losses, claims, damages and liabilities arising out of or related to following anything that may be posted in this blog. If you rely upon anything posted here, you do so at your sole risk and responsibility.

Clarification on Transfer of Assets of Branch Offices / Liaison Offices in India

A.P. (DIR Series 2011-12) Circular No.88, dated 1-3-2012

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.24, dated December 30, 2009 in terms of which powers have been delegated to the AD Category-I bank regarding submission of Annual Activity Certificate by BO/LOs, extension of the validity period of LOs and closure of BO/LOs of foreign entities in India.

2. In the A.P. (DIR Series) Circular mentioned above, powers as regards the transfer of assets of LO/BO to others have not been delegated. It is, therefore, clarified that transfer of assets of Liaison/Branch Office to subsidiaries or other LO/BO or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India.

3. All the other instructions of A.P. (DIR Series) Circular No.24, dated December 30, 2009 shall remain unchanged.

4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

 

Disclaimer:

Proteus Consultants and I are not responsible for any and all losses, claims, damages and liabilities arising out of or related to following anything that may be posted in this blog. If you rely upon anything posted here, you do so at your sole risk and responsibility.