Foreign Currency Account rules permit resident Indians to hold FCAs abroad for overseas direct investment, subject to compliance. An Indian party may open, hold and maintain a Foreign Currency Account abroad exclusively for overseas direct investment into a JV/WOS, provided the party is eligible under existing overseas direct investment regulations, the host country requires a designated account, and the FCA is maintained under host country law. Remittances into the FCA must be used only for the investment; dividends and entitlements must be repatriated within thirty days; annual debit/credit details must be submitted to the designated AD bank with a statutory auditor's certificate; and the FCA must be closed immediately or within thirty days after disinvestment or cessation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Foreign Currency Account rules permit resident Indians to hold FCAs abroad for overseas direct investment, subject to compliance.
An Indian party may open, hold and maintain a Foreign Currency Account abroad exclusively for overseas direct investment into a JV/WOS, provided the party is eligible under existing overseas direct investment regulations, the host country requires a designated account, and the FCA is maintained under host country law. Remittances into the FCA must be used only for the investment; dividends and entitlements must be repatriated within thirty days; annual debit/credit details must be submitted to the designated AD bank with a statutory auditor's certificate; and the FCA must be closed immediately or within thirty days after disinvestment or cessation.
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