TaxTMI 
TaxTMI 
Overseas Direct Investment- Liberalisation/ Rationalisation. - RBI issued consolidated guidelines relating to transfer of foreign security by way of sales of a JV or WOS outside India with and without write off
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....aler Banks Madam/Sir, Overseas Direct Investment- Liberalisation/ 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, and the following circula....
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....re or security held by it in a JV or WOS outside India subject to the following conditions: i. the sale does not result in any write off of the investment made. ii. the sale is to be effected through a stock exchange where the shares of the overseas JV/ WOS are listed; iii. if the shares are not listed on the stock exchange an....
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....dian party is not under investigation by CBI / DoE/ SEBI / IRDA or any other regulatory authority in India. 3. Transfer by way of sale of shares of a JV / WOS involving write off of the investment (a) Indian Parties may disinvest without prior approval of the Reserve Bank, in the under noted cases where the amount repatriated on disinvestment is less than the amount of the original inv....
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.... 4. The Indian Party is required to submit details of such disinvestment through its designated AD category-I bank within 30 days from the date of disinvestment. 5. An Indian Party, which does not satisfy the conditions stated above for undertaking any disinvestment in its JV/WOS abroad, shall have to apply to the Reserve Bank for prior permission. 6. Necessary amendments to the Foreign E....