TaxTMI 
TaxTMI 
Permission for Direct Investment in certain cases
X X X X Extracts X X X X
X X X X Extracts X X X X
....; (a) Remittance by market purchases, namely in freely convertible currencies; in case of Bhutan, investment made in freely convertible currencies or equivalent Indian Rupees, in case of Nepal investment made only in Indian Rupees; (b) Capitalization of export proceeds and other dues and entitlements as mentioned in Regulation 11; (c) Hundred per cent of the value of guarantees issued by the Indian party to on or behalf of the joint venture company or wholly owned subsidiary; (d) Investment in agricultural operations through overseas offices or directly; (e) External Commercial Borrowing in conformity with other parameters of the ECB guidelines; (f) Fifty per cent of the value of performance guarantee issued by the Indian party to or on behalf of the JV/WOS. &nbs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by the Financial Action Task Force (FATF) as "non co-operative countries and territories" as per list available on FATF website www.fatf-gafi.org or as notified by the Reserve Bank of India from time to time. ] (3) Investment under this Regulation may be funded out of one or more of the following sources, namely: - i. out of balance held in the Exchange Earners' Foreign Currency account of the Indian party maintained with an authorised dealer in accordance with Regulation 4 of Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000; ii. ^28[drawal of foreign exchange from an authorized dealer in India shall not exceed 100%, or as decided by the Reserve Bank from time to time, of the net worth of the Indian Party as on the date of last audited balance sheet; Explanation: For the purpose of the limit of 100%, or as decided by the Reserve Bank from time to time, of the net worth, the following shall be reckoned, namely:] (a) cash remittance by market ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; Explanation : In cases where invocation of the performance guarantees breach the ceiling for the financial exposure of 100 %, or as decided by the Reserve Bank from time to time, of the net worth of the Indian party, the Indian party shall seek the prior approval of the Reserve Bank before remitting funds from India, on account of such invocation.] ^22[(i) hundred per cent of the value of the bank guarantee issued by a resident bank on behalf of an overseas JV / WOS of the Indian party, which is backed by a counter guarantee / collateral by the Indian party.] Provided further that the ceiling mentioned in sub-clause (2)(i) shall not apply where the investment is made out of balances held in its EEFC account, maintained in accordance with the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, as amended from time to time. ^23[(4) (i) An Indian Party may extend a loan or a guarantee to or on behalf of the Joint Ve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (through Depository Receipt Mechanism) Scheme 1993 and the guidelines issued thereunder from time to time by the Central Government; ^32[(b) The Indian Party files with the designated authorised dealer in Parts I and II of the Form ODI, as prescribed by the Reserve Bank from time to time, full details of the investment proposed. ] (6)(a) For the purposes of investment under this Regulation by way of remittance from India in an existing company outside India, the valuation of shares of the company outside India shall be made, - (i) where the investment is more than USD 5 (Five) million, by a Category I Merchant Banker Registered with Securities and Exchange Board of India (SEBI), or an Investment Banker/Merchant Banker outside India registered with the appropriate regulatory authority in the host country; and (ii) in all other cases, by a Chartered Accountant or a Certified Public Accountant. (b) For the purposes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-12-2007 with effect from 26-9-2007, before substation it was read as, "For the purpose of determining 'total financial commitment' within the limit of 200% or 300% of the net worth as the case may be". 7. For the words "fifty per cent of the value of guarantees", the words "hundred per cent of the value of guarantees" has been substituted vide Notification No. G.S.R. 13(E) dated 9/10/2007 (with effect from the 14th day of June, 2007) 8 (with effect from the 12th day of May, 2005), for the words and figures "shall not exceed 100% of the net worth", the words and figures "shall not exceed 200% of the net worth" has been substituted. Further with effect from the 14th day of June, 2007, for the words "shall not exceed 200% of the net worth", the words and figures "shall not exceed 300% of the net worth in case of corporates and shall not exceed 200% of net worth in case of registered partnership firms" has been substituted vide Notification No. G.S.R. 13(E) dated 9/10/2007. Further substituted vide notification no. 173/2007 dated 19-12-2007 with effect from 26-9-2007, before substitution it was read as, "shall not exceed 300% of the net worth in case of corpo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o. FEMA 249/RB-2012, dated 22-11-2012, before it was read as:- "Notwithstanding anything contained in these Regulations investment in Pakistan shall not be permitted." 19. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. May 27, 20. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012. 21. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. May 27, 2011 22. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012 23. Substituted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. May 27, 2011before it was read as:- "(4) An Indian Party may extend a loan or a guarantee to or on behalf of the Joint Venture/Wholly Owned Subsidiary abroad, within the permissible financial commitment, provided that the Indian Party has made investment by way of contribution to the equity capital of the Joint Venture." 24. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012 25. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012 26. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28....