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Master Circular on Foreign Investment in India.
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.... and be replaced by an updated Master Circular on the subject. Yours faithfully, (Rudra Narayan Kar) Chief General Manager ============= Document 1 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE व रिजरà¥à¤µ बैंक BANK X OF INDEX PART - I... Foreign Investments in India—Schematic Representation: SECTION - I: FOREIGN DIRECT INVESTMENT 1. Foreign Direct Investment in India..... 2. Entry routes for investments in India 3. Eligibility for Investment in India.. 4. Type of instruments.... 5. Pricing guidelines 6. Mode of Payment .0 .3 .8 3345578 .3 .5 .7 7. Foreign Investment limits, Prohibited Sectors and investment in MSES 8. Modes of Investment under Foreign Direct Investment Scheme. .10 8.A. Issuance of fresh shares by the company .10 8.B Acquisition by way of transfer of existing shares by person resident outside India 8.C. Issue of Rights / Bonus shares. .10 .15 8.D. Issue of shares under Employees Stock Option Scheme (ESOPs) 15 8.E Conversion of ECB / Lumpsum Fee / Royalty / Import of capital goods by SEZs i....
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.....51 .53 INVESTMENT IN PARTNERSHIP FIRM / PROPRIETARY CONCERN 52 1. 2. Investments with repatriation benefits ….... 3. Investment by non-residents other than NRIs / PIO.. Investment in Partnership Firm / Proprietary Concern. .52 .52 .52 4. Restictions...... Annex - 1 Annex - 2 Annex - 3 Annex-4 Annex - 5 Annex - 6 Annex - 7 Annex - 8 Annex - 9-1 Annex 9-II.. Annex 10 - Annex - 11 Annex 12. APPENDIX. .54 .92 .93 .96 .97 ...98 .100 .101 .108 .114 115 .89 .90 .90 Website:www.fema.rbi.org.in 2 Email: [email protected] Part - Foreign Investments in India—Schematic Representation: Foreign Direct Foreign Portfolio Investments Investments Automatic Route Govt. Route Foreign Investments Foreign Venture Capital Investments Other investments (G-Sec, NCDs, etc) Investments on non-repatriable basis Persons Fils Resident outside NRIs, PIO,QFIS Flls India SEBI regd. FVCIS NRIs, PIO,QFIS NRIS, PIO VCF, IVCUS • à¤à¤¾à¤°à¤¤à¥€....
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....investor or the Indian company should obtain prior approval of the Government of India, Ministry of Finance, Foreign Investment Promotion Board (FIPB) for the investment. 3. Eligibility for Investment in India (i) (iii) A person resident outside India² (other than a citizen of Pakistan) or an entity incorporated outside India, (other than an entity incorporated in Pakistan) can invest in India, subject to the FDI Policy of the Government of India. A person who is a citizen of Bangladesh or an entity incorporated in Bangladesh can invest in India under the FDI Scheme, with the prior approval of the FIPB. (ii) NRIs, resident in Nepal and Bhutan as well as citizens of Nepal and Bhutan are permitted to invest in shares and convertible debentures of Indian companies under FDI Scheme on repatriation basis, subject to the condition that the amount of consideration for such investment shall be paid only by way of inward remittance in free foreign exchange through normal banking channels. Overseas Corporate Bodies (OCBs) have been de-recognised as a class of investors in India with effect from September 16, 2003. Erstwhile OCBs which ....
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....account for liquidating previous investment held on non-repatriation basis should be forwarded by the AD bank to Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai. However, ADs should not close other category of accounts (NRE / FCNR / NRO) of OCBs which are in the adverse list of the Reserve Bank of India. These accounts are to be maintained by the respective AD banks in the frozen status. 4. Type of instruments i) Indian companies can issue equity shares, fully and mandatorily convertible debentures and fully and mandatorily convertible preference shares subject to the pricing guidelines / valuation norms and reporting requirements amongst other requirements as prescribed under FEMA Regulations. ii) Issue of other types of preference shares such as, non-convertible, optionally convertible or partially convertible, have to be in accordance with the guidelines applicable for External Commercial Borrowings (ECBs). iii) As far as debentures are concerned, only those which are fully and mandatorily convertible into equity, within a specified time would be reckoned as part of equity under the FDI Policy. 5. Pric....
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....ding the relevant date, which shall be the date of purchase or sale of shares. The price per share arrived at should be certified by a SEBI registered Merchant Banker or a Chartered Accountant. 4 A.P. (DIR Series) Circular No. 49 dated May 4, 2010 6 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ BANK बैंक OF 1 â– (b) negotiated price for shares of companies which are not listed on a recognized stock exchange in India which shall not be less than the fair value to be determined by a SEBI registered Merchant Banker or a Chartered Accountant as per the Discounted Free Cash Flow(DCF) method. Further, transfer of existing shares by Non-resident (i.e. by incorporated non- resident entity, erstwhile OCB, foreign national, NRI, FII) to Resident shall not be more than the minimum price at which the transfer of shares can be made from a resident to a non-resident as given above. The pricing of shares / convertible debentures / preference shares should be decided determined upfront at the time of issue of the instruments. The price for the convertible inst....
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....n received towards issue of security if such amount is outstanding beyond the period of 180 days from the date of receipt. 7. Foreign Investment limits, Prohibited Sectors and investment in MSES a) Foreign Investment Limits The details of the entry route applicable and the maximum permissible foreign investment / sectoral cap in an Indian Company are determined by the sector in which it is operating. The details of the entry route applicable along with the sectoral cap for foreign investment in various sectors are given in Annex -1. b) Investments in Micro and Small Enterprise (MSE) A company which is reckoned as Micro and Small Enterprise (MSE) (earlier Small Scale Industrial Unit) in terms of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, including an Export Oriented Unit or a Unit in Free Trade Zone or in Export Processing Zone or in a Software Technology Park or in an Electronic Hardware Technology Park, and which is not engaged in any activity/sector mentioned in Annex 2 may issue shares or convertible debentures to a person resident outside India (other than a resident of Pakistan and to a resident of Bangla....
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.... (b) Lottery Business including Government /private lottery, online lotteries, etc. (c) Gambling and Betting including casinos etc. (d) Business of Chit funds (e) Nidhi company (f) Trading in Transferable Development Rights (TDRs) (g) Real Estate Business or Construction of Farm Houses 6 As per Notification no. FEMA 1/2000-RB dated May 3, 2000 7 As per Notification no. FEMA 20/2000-RB dated May 3, 2000 9 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ बैंक OF IN BANK (h) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (i) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems). Note: Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities. 8. Modes of Investment under Foreign Direct Investment Scheme. Foreign Direct Investment in India can be done through the following mo....
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....ached to the Form FC-TRS to befiled with the AD bank. (d) Compliance with reporting and other guidelines as given in Annex 3. Note: Transfer of shares from a Non Resident to Resident other than under SEBI regulations and where the FEMA pricing guidelines are not met would require the prior approval of the Reserve Bank of India. iii) Sale of shares/ convertible debentures on the Stock Exchange by person resident outside India: A person resident outside India can sell the shares and convertible debentures of an Indian company on a recognized Stock Exchange in India through a stock broker registered with stock exchange or a merchant banker registered with SEBI. 8.B.Il Transfer of shares/convertible debentures from Resident to Person Resident outside India 11 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ERVE ESERV BANK OF 19 A person resident in India can transfer by way of sale, shares / convertible debentures (including transfer of subscriber's shares), of an Indian company under private arrangement to a person resident outside India, subject to the following along with pricing, reporting and other guidelines given in....
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.... earlier covered under the Government Route but now falling under Automatic Route of the Reserve Bank, as well as transfer of shares by a non-resident to an Indian company under buyback and / or capital reduction scheme of the company. However, this general permission would not be available for the above transactions if they are not meeting the pricing guidelines or in case of transfer of shares / debentures by way of gift from a Resident to a Non-Resident / Non-Resident Indian. 8.B. III Transfer of Shares by Resident which requires Government approval The following instances of transfer of shares from residents to non-residents by way of sale or otherwise requires Government approval : (i) Transfer of shares of companies engaged in sector falling under the Government Route. (ii) Transfer of shares resulting in foreign investments in the Indian company, breaching the sectoral cap applicable. 8.B. IV Prior permission of the Reserve Bank in certain cases for acquisition / transfer of security (i) Transfer of shares or convertible debentures from residents to non-residents by way of sale requires prior approval of Reserve Bank in case wh....
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....It has also been decided to permit SEBI authorised Depository Participant, to 9 Addressed to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, 11 th floor, Fort, Mumbai 400 001 along with the documents prescribed in Annex-4. 14 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ बैंक OF I BANK open and maintain, without approval of the Reserve Bank, Escrow account for securities as stated in para 9 (b). 8.B.VI The reporting guidelines are given in Section V of the Master Circular. 8.C. Issue of Rights / Bonus shares An Indian company may issue Rights / Bonus shares to existing non-resident shareholders, subject to adherence to sectoral cap, reporting requirements, etc. Further, such issue of bonus / rights shares have to be in accordance with other laws / statutes like the Companies Act, 1956, SEBI (Issue of Capital and Disclosure Requirements), Regulations 2009, etc. O Issue of Right shares to OCBs: OCBs have been de-recognised as a class of investors with effect from Septem....
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....or FDI or the company has obtained Government's approval for foreign equity in the company; b) The foreign equity after conversion of ECB into equity is within the sectoral cap, if any; c) Pricing of shares is determined as per SEBI regulations for listed company or DCF method for unlisted company; d) Compliance with the requirements prescribed under any other statute and regulation in force; e) The conversion facility is available for ECBS availed under the Automatic or Approval Route and is applicable to ECBs, due for payment or not, as well as secured/unsecured loans availed from non-resident collaborators. (ii) General permission is also available for issue of shares/preference shares against lump-sum technical know-how fee, royalty, under automatic route or SIA / FIPB route, subject to pricing guidelines of RBI/SEBI and compliance with applicable tax laws. (iii) Units in Special Economic Zones (SEZs) are permitted to issue equity shares to non-residents against import of capital goods subject to the valuation done by a Committee consisting of Development Commissioner and the appropriate Customs officials. 16 • à¤....
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....ideration which has to be paid for shares acquired in the overseas company, can be done with the approval of FIPB. (vii) The reporting guidelines are given in Section V of the Master Circular. 8.F. Issue of shares by Indian Companies under ADR / GDR Depository Receipts (DRs) are negotiable securities issued outside India by a Depository bank, on behalf of an Indian company, which represent the local Rupee denominated equity shares of the company held as deposit by a Custodian bank in India. DRs are traded on Stock Exchanges in the US, Singapore, Luxembourg, London, etc. DRs listed and traded in the US markets are known as American Depository Receipts (ADRs) and those listed and traded elsewhere are known as Global Depository Receipts (GDRs). In the Indian context, DRs are treated as FDI. i) Indian companies can raise foreign currency resources abroad through the issue of ADRs/GDRs, in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India thereunder from time to time. ii) A company can issue ADRs....
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....ns of Companies Act, 1956 and in a manner in which restrictions on voting rights imposed on ADR/GDR issues shall be consistent with the Company Law provisions. Voting rights in the case of banking companies will continue to be in terms of the provisions of the Banking Regulation Act, 1949 and the instructions issued by the Reserve Bank 12 from time to time, as applicable to all shareholders exercising voting rights. viii) Erstwhile OCBs which are not eligible to invest in India and entities prohibited to buy/sell or deal in securities by SEBI will not be eligible to subscribe to ADRs/GDRs issued by Indian companies. 12 As per DBOD Circular No. DBOD.No.PSBD.7269/16.13.100/2006-07 dated February 5,2007 bank raising fund through ADR / GDR mechanism, should give an undertaking to the Reserve Bank that they would not take cognizance to voting by the depository, should the depository vote in contravention of its agreement with the bank. 19 • à¤à¤¾à¤°à¤¤à¥€à¤¯ रिजरà¥à¤µ बैंक ERVE BANK OF ix) The pricing of ADR / GDR issues including sponsored ADRs/GDRs sho....
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....ncy Account and Escrow Account a) Indian companies which are eligible to issue shares to persons resident outside India under the FDI Scheme will be allowed to retain the share subscription amount in a Foreign Currency Account for bonafide business purpose only with the prior approval of the Reserve Bank. b) AD Category - I banks have been given general permission to open and maintain non-interest bearing Escrow account in Indian Rupees in India on behalf of residents and non-residents, towards payment of share purchase consideration and / or provide Escrow facilities for keeping securities to facilitate FDI transactions. It has also been decided to permit SEBI authorised Depository Participant, to open and maintain, without approval of the Reserve Bank, Escrow account for securities. The Escrow account would also be subject to the terms and conditions as stipulated in A.P. (DIR Series) Circular No. 58 dated May 2, 2011. Further, the Escrow account would be maintained with AD Category I bank or SEBI Authorised Depository Participant (in case of securities account). These facilities will be applicable to both, issue of fresh shares to the....
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.... with the provisions of the Companies Act, 1956. In case of winding up otherwise than by a court, an auditor's certificate to the effect that there is no legal proceedings pending in any court in India against the applicant or the company under liquidation and there is no legal impediment in permitting the remittance. Pledge of Shares a) A person being a promoter of a company registered in India (borrowing company), which has raised external commercial borrowings, may pledge the shares of the borrowing company or that of its associate resident companies for the purpose of securing the ECB raised by the borrowing company, provided that a no objection for the same is obtained from a bank which is an authorised dealer. The authorized dealer, 22 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ERVE ESERV रिजरà¥à¤µ बैंक OF 1 BANK shall issue the no objection for such a pledge after having satisfied itself that the external commercial borrowing is in line with the extant FEMA regulations for ECBs and that: i). the loan agreement has been signed by both the lender and the bor....
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....ion/ annual certificate from a Chartered Accountant/ Certified Public Accountant of the non-resident borrower that the loan proceeds will be/ have been utilized for the declared purpose. 24 24 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERV रिजरà¥à¤µ बैंक BANK OF Section - II: Foreign investments under Portfolio Investment Scheme (PIS) 1. Entities (i) Foreign Institutional Investors (Flls) registered with SEBI are eligible to purchase shares and convertible debentures issued by Indian companies under the Portfolio Investment Scheme (PIS). (iii) NRIs are eligible to purchase shares and convertible debentures issued by Indian companies under PIS, if they have been permitted by the designated branch of any AD - Category I bank (which has been authorised by the Reserve Bank to administer the PIS). (iii) SEBI approved sub accounts of Flls (sub accounts) have general permission to invest under the PIS. (iv) OCBs are not permitted to invest under the PIS with effect from November 29, 2001, in India. Further, the OCBS which have already made investments under the PIS ....
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....s followed by a special resolution to that effect by its General Body and should necessarily intimate the same to the Reserve Bank of India immediately as hitherto, along with a Certificate from the Company Secretary stating that all the relevant provisions of the extant Foreign Exchange Management Act, 1999 regulations and the Foreign Direct Policy, as amended from time to time, have been complied with. C. Prohibition on investments by Flls and NRIs â– Flls are not permitted to invest in the capital of an Asset Reconstruction Company. Both Flls and NRIs are not allowed to invest in any company which is engaged or proposes to engage in the following activities: 26 26 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERV ERVE रिजरà¥à¤µ बैंक i) Business of chit fund, or ii) Nidhi company, or iii) Agricultural or plantation activities, or iv) Real estate business* or construction of farm houses, or v) Trading in Transferable Development Rights (TDRs). * Real estate business" does not include construction of housing / commercial premises, educational i....
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....NRIs can also utilise their funds in NRO account in addition to the above. 4. 13 Exchange Traded Derivative Contracts A. Fils " 13 SEBI registered Flls are allowed to trade in all exchange traded derivative contracts approved by RBI/SEBI on recognised Stock Exchanges in India subject to the position limits and margin requirements as prescribed by RBI / SEBI from time to time as well as the stipulations regarding collateral securities as directed by the Reserve Bank from time to time. The SEBI registered FII / sub-account may open a separate account under their SNRR A/c through which all receipts and payments pertaining to trading / investment in exchange traded derivative contracts will be made (including initial margin and mark to market settlement, transaction charges, brokerage, etc.). Further, transfer of funds between the SNRR A/c and the separate account maintained for the purpose of trading in exchange traded derivative contracts can be freely made. However, repatriation of the Rupee amount will be made only through their SNRR A/c subject to payment of relevant taxes. The AD Category - I banks have to keep pro....
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....rom time to time; the current limit being USD 20 billion) also can be kept as collateral to the recognised Stock Exchanges in India in addition to the cash for their transactions in cash segment of the market. However, cross-margining of Government Securities (placed as margins by the FIls for their transactions in the cash segment of the market) shall not be allowed between the cash and the derivative segments of the market. 14 Addressed to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, Mumbai. 29 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERV रिजरà¥à¤µ बैंक BANK OF Custodian banks are allowed to issue Irrevocable Payment Commitments (IPCs) in favor of Stock Exchanges / Clearing Corporations of the Stock Exchanges, on behalf of their FIl clients for purchase of shares under the PIS. Issue of IPCs should be in accordance with the Reserve Bank regulations on banks' exposure to the capital market issued by the Reserve Bank from time to time and instructions issued vide DBOD Circular no. DB....
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....rve Bank. However, NRIs can transfer shares acquired under PIS to their relatives as defined in Section 6 of Companies Act, 1956 or to a charitable trust duly registered under the laws in India. 9. Monitoring of investment position by RBI and AD banks The Reserve Bank monitors the investment position of Flls/NRIs in listed Indian companies, reported by Custodian/designated AD banks, on a daily basis, in Forms LEC (FII) and LEC (NRI). However, the respective designated bank (NRIs) / Custodian bank (Flls) should monitor: â– â– â– the individual limit of NRI / FII to ensure that it does not breach the prescribed limits. that the trades are not undertaken in the prohibited sectors when the same is reported to them. that all trades are reported to them by monitoring the transactions in the designated account. The onus of reporting of FII and NRI transactions lies on the designated custodian/AD bank, depository participant as well as the FII/NRI making these investments. 10. Prior intimation to Reserve Bank of India Indian company raising the aggregate FII investment limit of 24 per cent to the sectoral cap/ st....
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....vour of the 32 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ रिजरà¥à¤µ बैंक ESERVE BANK OF Stock Exchanges / Clearing Corporations of the Stock Exchanges, on behalf of their FII clients for purchase of shares under the Portfolio Investment Scheme (PIS). 14. Investment by Qualified Foreign Investors(QFIs) in listed equity shares Qualified Foreign Investors (QFIs as defined therein to mean non-resident investors, other than SEBI registered FIls and SEBI registered FVCIs, who meet the KYC requirements of SEBI) are allowed to purchase on repatriation basis equity shares of Indian companies subject the following terms and conditions : - (i) Eligible instruments and eligible transactions QFIs shall be permitted to invest through SEBI registered Depository Participants (DPS) only in equity shares of listed Indian companies through recognized brokers on recognized stock exchanges in India as well as in equity shares of Indian companies which are offered to public in India in terms of the relevant and applicable SEBI guidelines/regulations. QFIs shall also be permitted to acquire equ....
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....they shall be remitted to the designated overseas bank accounts of the QFIs within five working days (including the day of credit of such funds to the single rupee pool bank account). Within these five working days, the dividend payments can be also utilized for fresh purchases of equity shares under this scheme, if so instructed by the QFI. (iii) Demat accounts - QFIs would be allowed to open a dedicated demat account with a DP in India for investment in equity shares under the scheme. The QFIs would however not be allowed to open any bank account in India. (iv) Limits - The individual and aggregate investment limits for the QFIs shall be 5% and 10% respectively of the paid up capital of an Indian company. These limits shall be over and above the FII and NRI investment ceilings prescribed under the Portfolio Investment Scheme for foreign investment in India. Further, wherever there are composite sectoral caps under the extant FDI policy, these limits for QFI investment in equity shares shall also be within such overall FDI sectoral caps. The onus of monitoring and compliance of these limits shall remain jointly and severally with the respecti....
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.... dedicated pool of capital raised in a manner specified under the said Regulations and which invests in Venture Capital Undertakings in accordance with the said Regulations. (iii) FVCIs can purchase equity / equity linked instruments / debt / debt instruments, debentures of an IVCU or of a VCF or in units of schemes / funds set up by a VCF through initial public offer or private placement or by way of private arrangement or purchase from third party. Further, FVCIs would also be allowed to invest in securities on a recognized stock exchange subject to the provisions of the SEBI(FVCI) Regulations, 2000, as amended from time to time. (iv) At the time of granting approval, the Reserve Bank permits the FVCI to open a non- interest bearing Foreign Currency Account and/or a non-interest bearing Special Non- Resident Rupee Account with a designated branch of an AD Category - I bank, subject to certain terms and conditions. (v) A SEBI registered FVCI can acquire / sale securities (as given in (iii) above) by way of public offer or private placement by the issuer of such securities and /or by way of 36 • à¤à¤¾à¤°à¤¤à¥€à¤....
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....ual funds; bonds issued by a public sector undertaking (PSU) in India and shares in Public Sector Enterprises being disinvested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids. 38 38 • à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक OF 11 a) 2. Indian Depository Receipts (IDR) Indian Depository Receipts (IDRs) can be issued by non resident companies in India subject to and under the terms and conditions of Companies (Issue of Depository Receipts) Rules, 2004 and subsequent amendment made thereto and the SEBI (ICDR) Regulations, 2000, as amended from time to time. These IDRs can be issued in India through Domestic Depository to residents in India as well as SEBI registered Flls and NRIs. In case of raising of funds through issuances of IDRs by financial / banking companies having presence in India, either through a branch or subsidiary, the approval of the sectoral regulator(s) should be obtained before the issuance of IDRS. The FEMA Regulations shall not be appli....
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....DRs into underlying shares. iv. The FEMA provisions shall not apply to the holding of the underlying shares, on redemption of IDRs by the FIls including SEBI approved sub-accounts of the Fils and NRIs. f) The proceeds of the issue of IDRS shall be immediately repatriated outside India by the eligible companies issuing such IDRs. The IDRs issued should be denominated in Indian Rupees. 3. Purchase of other securities by Flls Flls can buy on repatriation basis dated Government securities / treasury bills, listed non-convertible debentures / bonds, commercial papers issued by Indian companies and units of domestic mutual funds, to be listed NCDs/ bonds only if listing of such NCDs/bonds is committed to be done within 15 days of such investment, Security receipts issued by Asset Reconstruction Companies and Perpetual Debt Instruments eligible for inclusion in as Tier I capital (as defined by DBOD, RBI) and Debt capital instruments as upper Tier II Capital (as defined by DBOD, RBI) issued by banks in India to augment their capital either directly from the issuer of such securities or through a registered stock broker on a recognized stock e....
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....illion. d) The utilisation of USD 20 billion limit in Government securities for FIls/ Long term investors would be as under : • limit of USD 10 billion without any residual maturity restrictions. • Balance limit of USD 10 billion with residual maturity of at least three years at the time of first purchase. 15 AP Dir Series Circular No 55 dated April 29,2011 41 • à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक OF 1 BANK 4. Investment by Multilateral Development Banks (MDBs) A Multilateral Development Bank (MDB) which is specifically permitted by the Government of India to float rupee bonds in India can purchase Government dated securities. 5. Foreign Investment in Tier I and Tier II instruments issued by banks in India (i) Flls registered with SEBI and NRIs have been permitted to subscribe to the Perpetual Debt instruments (eligible for inclusion as Tier I capital) and Debt Capital instruments (eligible for inclusion as upper Tier II capital), issued by banks in India and denominated in Indian Rupees, subject to the following con....
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....hase on repatriation basis rupee denominated units of equity schemes of SEBI registered domestic MFs as Qualified Foreign Investors' (QFIs), in accordance with the terms and conditions as stipulated by the SEBI and the RBI from time to time in this regard. QFIs may invest in rupee denominated units of equity schemes of SEBI registered domestic MFs under the two routes, namely: (i) Direct Route - SEBI registered Depository Participant (DP) route - 。 The DP route will be operated through separate single rupee pool bank account to be maintained by the DP with an AD Category I Bank in India. The foreign inward remittances in to the single rupee pool bank account of DPs shall be received only in permissible currency (i.e. freely convertible currency). 。 The time period for which funds (by way of foreign inward remittance through normal banking channels from QFIs as well as by way of credit of redemption proceeds of the units of domestic Mutual Funds by QFIs in India) can be kept in 16 Addressed to the Chief General Manager-in-Charge, Foreign Exchange Department, Reserve Bank of India, Foreign Investment Division, Central Offi....
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....OF INDI Finance Minister in his budget speech for 2011-12 had announced setting up of Infrastructure Debt Funds (IDFs). Government vide press release dated June 24, 2011 notified the broad structure of the proposed IDFs. The summarized position is given as under: (i) SWFs, Multilateral Agencies, Pension Funds, Insurance Funds and Endowment Funds - registered with SEBI, FIls, NRIs, HNIs would be the eligible class non- resident investors which will be investing in IDFs (ii) Eligible non-resident investors are allowed to invest on repatriation basis in (i) Rupee and Foreign currency denominated bonds issued by the IDFs set up as an Indian company and registered as Non-Banking Financial Companies (NBFCs) with the Reserve Bank of India and in (ii) Rupee denominated units issued by IDFS set up as SEBI registered domestic Mutual Funds (MFS), in accordance with the terms and conditions stipulated by the SEBI and the Reserve Bank of India from time to time. (iii) The eligible instruments are Foreign Currency & Rupee denominated Bonds and Rupee denominated Units. (iv) The original / initial maturity of all aforementioned securities at the time....
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....ount of the non- resident investor. In case, the equity instruments are not issued within 180 days from the date of receipt of the inward remittance or date of debit to the NRE/FCNR (B) 17 Part B of form FC-GPR has been discontinued and replaced by an Annual return for Foreign Assets and Liabilities which is available at http://rbidocs.rbi.org.in/rdocs/content/pdfs/APFL200612_F.pdf 46 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ RESERVE रिजरà¥à¤µ बैंक BANK OF account, the amount of consideration so received should be refunded immediately to the non-resident investor by outward remittance through normal banking channels or by credit to the NRE/FCNR (B)/Escrow account, as the case may be. Non-compliance with the above provision would be reckoned as a contravention under FEMA and could attract penal provisions. In exceptional cases, refund / allotment of shares for the amount of consideration outstanding beyond a period of 180 days from the date of receipt may be considered by the Reserve Bank, on the merits of the case. (iii) Reporting of issue of shares (a) After issue of sh....
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....The actual inflows and outflows on account of such transfer of shares shall be reported by the AD branch in the R-returns in the normal course. - (ii) Reporting of transfer of shares between residents and non-residents and vice-versa is to be made in Form FC-TRS (enclosed in Annex – 9-i). The Form FC-TRS should be submitted to the AD Category - I bank, within 60 days from the date of receipt of the amount of consideration. The onus of submission of the Form FC-TRS within the given timeframe would be on the transferor / transferee, resident in India. (iii) The sale consideration in respect of equity instruments purchased by a person resident outside India, remitted into India through normal banking channels, shall be subjected to a KYC check (Annex 9-ii) by the remittance receiving AD Category - I bank at the time of receipt of funds. In case, the remittance receiving AD Category – I bank is different from the AD Category - I bank handling the transfer transaction, the KYC check should be carried out by the remittance receiving bank and the KYC report be submitted by the customer to the AD Category - I bank carrying out the tra....
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....-Kurla Complex, Mumbai 400 051, within seven working days from the close of month to which it relates. The words "ECB wholly converted to equity" shall be clearly indicated on top of the Form ECB-2. Once reported, filing of Form ECB-2 in the subsequent months is not necessary. 49 49 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ERVE ESERV रिजरà¥à¤µ BANK बैंक OF b. In case of partial conversion of ECB, the company shall report the converted portion in Form FC-GPR to the Regional Office concerned as well as in Form ECB-2 clearly differentiating the converted portion from the non-converted portion. The words "ECB partially converted to equity" shall be indicated on top of the Form ECB-2. In the subsequent months, the outstanding balance of ECB shall be reported in Form ECB-2 to DSIM. c. The SEZ unit issuing equity as mentioned in para (iii) above, should report the particulars of the shares issued in the Form FC-GPR. 4. Reporting of ESOPs for allotment of equity shares The issuing company is required to report the details of issuance of ESOPs to its employees to ....
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....ing purposes. 7. Reporting of NRI investments under PIS scheme The link office of the designated branch of an AD Category - I bank shall furnish to the Reserve Bank 18, a report on a daily basis on PIS transactions undertaken by it, on behalf of NRIs. This report can be furnished on a floppy to the Reserve Bank and also uploaded OFRS site It would be the banks directly on the (https://secweb.rbi.org.in/ORFSMainWeb/Login.jsp). web responsibility to ensure that the data submitted to RBI is reconciled by periodically taking a NRI holding report for their bank. 8. Reporting of foreign investment by way of issue / transfer of ‘participating interest/right' in oil fields Foreign investment by way of issue / transfer of ‘participating interest/right' in oil fields by Indian companies to a non resident would be treated as an FDI transaction under the extant FDI policy and the FEMA regulations. Accordingly, transfer of 'participating interest/ rights' will be reported as 'other' category under Para 7 of revised Form FC-TRS as given in the Annex-8 and issuance of ‘participating interest/ rights' will be....
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.... रिजरà¥à¤µ बैंक ESERVE BANK OF A person resident outside India other than NRIs / PIO may make an application and seek prior approval of Reserve Bank 22, for making investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The application will be decided in consultation with the Government of India. 4. Restictions An NRI or PIO is not allowed to invest in a firm or proprietorship concern engaged in any agricultural/plantation activity or real estate business (i.e. dealing in land and immovable property with a view to earning profit or earning income therefrom) or engaged in Print Media. 22 Addressed to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, Mumbai 53 • à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERV रिजरà¥à¤µ बैंक Annex - 1 (PART I, Section I, para 7(a)) Sector-specific policy for foreign investment In the following sectors/activities, FDI up to the li....
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....red cells and material shall be subject to the receipt of approvals from Genetic Engineering Approval Committee (GEAC) and Review Committee on Genetic Manipulation (RCGM). (v) Import of materials shall be in accordance with National Seeds Policy. II. The term 'under controlled conditions' covers the following: Ü€ "Cultivation under controlled conditions' for the categories of Floriculture, Horticulture, Cultivation of vegetables and Mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro- climatic conditions are regulated anthropogenically. 55 55 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ BANK बैंक OF 11 Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity â– In case of Animal Husbandry, scope of the term ‘under controlled Conditions' covers - ....
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....bject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to coal processing plants for washing or sizing. Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities 57 57 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक OF IT BANK Sl.No. 3.3.1 3.3.2 Sector/Activity Mining and mineral separation of titanium bearing minerals & ores, its value addition and integrated activities subject to sectoral regulations and the Mines and Minerals (Development and Regulation Act 1957) Other conditions: % of Cap/Equity 100% FDI Entry Route Government India has large reserves of beach sand minerals in the coastal stretches around the country. Titanium bearing minerals viz. Ilmenite, rutile and leucoxene, and Zirconium bearing minerals including zircon are some of the beach s....
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....is to ensure that the raw material available in the country is utilized for setting up downstream industries and the technology available internationally is also made available for setting up such industries within the country. Thus, if with the technology transfer, the objective of the FDI Policycan be achieved, the conditions prescribed at (i) (A) above shall be deemed to be fulfilled. Petroleum & Natural Gas 4 4.1 Exploration activities of oil and 100% natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas/pipelines, LNG Automatic 50 59 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक OF 11 BANK Sl.No. 4.2 5 5.1 Sector/Activity Regasification infrastructure, market study and formulation and Petroleum refining in the private sector, subject to the existing sectoral policy and regulatory framework in the oil marketing sector and the policy of the Government on private participation....
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....t Indians. (iv) Full particulars of the Directors and the Chief Executives should be furnished along with the applications. (v) The Government reserves the right to verify the antecedents of the foreign collaborators and domestic promoters including their financial standing and credentials in the world market. Preference would be given to original equipment manufacturers or design establishments, and companies having a good track record of past supplies to Armed Forces, Space and Atomic energy sections and having an established R & D base. 61 â— à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ BANK बैंक OF 11 Sl.No. Sector/Activity % of Cap/Equity FDI Entry Route (vi) There would be no minimum capitalization for the FDI. A proper assessment, however, needs to be done by the management of the applicant company depending upon the product and the technology. The licensing authority would satisfy itself about the adequacy of the net worth of the non-resident investor taking into account the category of weapons and equipment that are propos....
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.... other Government entities under the control of the Ministry of Home Affairs and State Governments with the prior approval of the Ministry of Defence. No such item should be sold within the country to any other person or entity. The export of manufactured items would be subject to policy and guidelines as applicable to Ordnance Factories and Defence Public Sector Undertakings. Non-lethal items would be permitted for sale to persons / entities other than the Central of State Governments with the prior approval of the Ministry of Defence. Licensee would also need to institute a verifiable system of removal of all goods out of their factories. Violation of these provisions may lead to cancellation of the licence. 63 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ BANK OF 1 Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity (xv) Government decision on applications to FIPB for FDI in defence industry sector will be normally communicated within a time frame of 10 weeks from the date of acknowledgement. SERVICES SECTOR INFORMATION SERVICES 7 7.1 7.2 7.3 7.4 7.....
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....e 'persons acting in concert' with FDI investors, as defined in the SEBI(Substantial Acquisition of Shares and Takeovers) Regulations, 1997 Other conditions: (i) All the activities at (1), (2) and (3) above will be further subject to the condition that the Company permitted to uplink the channel shall certify the continued compliance of this requirement through the Company Secretary at the end of each financial year. (ii) FDI for Up-linking TV Channels will be subject to compliance with the Up-linking Policy notified by the Ministry of Information Broadcasting from time to time. 8 8.1 Print Media 8.2 8.2.1 Publishing of Newspaper and 26% (FDI and Government periodicals dealing with news and current affairs Publication of Indian editions of foreign magazines dealing with news and current affairs Other Conditions: investment NRIS/PIOS/FII) by 26% (FDI investment NRIS/PIOS/FII) and Government by (i) '[Magazine', for the purpose of these guidelines, will be defined as a & periodical publication, brought out on non-daily basis, containing public news or comments on public news. ....
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.... be used, either wholly or in part, for the landing or departure of aircraft, and includes all buildings, sheds, vessels, piers and other structures thereon or pertaining thereto; (iii)"Air transport service" means a service for the transport by air of persons, mails or any other thing, animate or inanimate, for any kind of remuneration whatsoever, whether such service consists of a single flight or series of flights; (iv)"Air Transport Undertaking" means an undertaking whose business includes the carriage by air of passengers or cargo for hire or reward; (v) "Aircraft component" means any part, the soundness and correct functioning of which, when fitted to an aircraft, is essential to the continued airworthiness or safety of the aircraft and includes any item of equipment; (vi)"Helicopter" means a heavier-than-air aircraft supported in flight by the reactions of the air on one or more power driven rotors on substantially vertical axis; (vii) "Scheduled air transport service" means an air transport service undertaken between the same two or more places and operated according to a published time table or with flights so regular o....
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....rvices/seaplane 100% services requiring DGCA approval Other services under Civil Aviation sector (1) Ground Handling Services subject to sectoral regulations and security clearance 74% FDI 74% Automatic Automatic up (100% for NRIs) to 49% Government route beyond 49% and up to 74% Automatic (2) Maintenance and Repair 100% organizations; flying training institutes; and technical training institutions 10 Courier services 11 11.1 11.2 for carrying 100% packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898 and excluding the activity relating to the distribution of letters. Government Construction Development: Townships, Housing, Built-up infrastructure Townships, housing, built-up 100% infrastructure and construction- development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure) Investment will be subject to the following conditions: Automatic (....
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....s, including those of the building/layout plans, developing 770 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ BANK OF 1 Sl.No. 12 12.1 Sector/Activity % of Cap/Equity FDI Entry Route internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed under applicable rules/bye-laws/regulations of the State Government/Municipal/Local Body concerned. (7) The State Government/ Municipal/ Local Body concerned, which approves the building development plans, would monitor compliance of the above conditions by the developer. Note: (i) The conditions at (1) to (4) above would not apply to Hotels & Tourism, Hospitals, Special Economic Zones (SEZs), Education Sector, Old age Homes and investment by NRIs. (ii) FDI is not allowed in Real Estate Business. Industrial Parks – new and existing 100% - Automatic (i) “Industrial Park" is a project in which quality infrastructure in the form of plots of developed land or built up space or a combi....
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.... subject to the conditionalities applicable for construction development projects etc. spelt out in para 11 above, provided the Industrial Parks meet with the under-mentioned conditions: (i) it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area; 72 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ OF 1 BANK Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity (ii) the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area. Satellites Establishment and operation 13 13.1 Satellites - operation, subject to the sectoral Government Establishment and 74% guidelines of Department of Space/ISRO 14 Private Security Agencies 49% 15 Telecom Services Government Investment caps and other conditions for specified services are given below. However, licensing and security requirements notified by the Department of Telecommunications will need to be complied with for all services. 15.1 (i) Telecom services 74% Automatic u....
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....to any place outside India. (iv) The licensee company shall take adequate and timely measures to ensure that the information transacted through a network by the subscribers is secure and protected. 74 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE BANK रिजरà¥à¤µ OF 1 Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity (v) The officers/officials of the licensee companies dealing with the lawful interception of messages will be resident Indian citizens. (vi) The majority Directors on the Board of the company shall be Indian citizens. (vii) The positions of the Chairman, Managing Director, Chief Executive Officer (CEO) and/or Chief Financial Officer (CFO), if held by foreign nationals, would require to be security vetted by Ministry of Home Affairs (MHA). Security vetting shall be required periodically on yearly basis. In case something adverse is found during the security vetting, the direction of MHA shall be binding on the licensee. (viii) The Company shall not transfer the following to any person/place outside India:- (a) Any accounting information relating to subscriber....
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....ring from a centralized location. (xvii) The telecom service providers should familiarize/train Vigilance Technical Monitoring (VTM)/security agency officers/officials respect of relevant operations/features of their systems. (xviii) It shall be open to the licensor to restrict the Licensee Company in 76 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ BANK OF 1 Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity from operating in any sensitive area from the National Security angle. (xix) In order to maintain the privacy of voice and data, monitoring shall only be upon authorisation by the Union Home Secretary or Home Secretaries of the States/Union Territories. (xx) For monitoring traffic, the licensee company shall provide access of their network and other facilities as well as to books of accounts to the security agencies. (xxi) The aforesaid Security Conditions shall be applicable to all the licensee companies operating telecom services covered under this circular irrespective of the level of FDI. (xxii)Other Service Providers (OSPs), providing services like Call....
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....d to sales for the purpose of personal consumption. The yardstick to determine whether the sale is wholesale or not would be the type of customers to whom the sale is made and not the size and volume of sales. Wholesale trading would include 78 78 à¤à¤¾à¤°à¤¤à¥€à¤¯ रिजरà¥à¤µ ESERVE BANK OF Sl.No. 16.1.2 Sector/Activity % of FDI Entry Route Cap/Equity resale, processing and thereafter sale, bulk imports with ex-port/ex-bonded warehouse business sales and B2B e-Commerce. Guidelines for Cash & Carry Wholesale Trading/Wholesale Trading (WT): (a) For undertaking WT, requisite licenses/registration/ permits, as specified under the relevant Acts/Regulations/Rules/Orders of the State Government/Government Body/Government Authority/Local Self- Government Body under that State Government should be obtained. Except in case of sales to Government, sales made by the wholesaler would be considered as 'cash & carry wholesale trading/wholesale trading' with valid business customers, only when WT are made to the following (b) entities: (I) Entities holding sales t....
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....n setting up manufacturing facility commences simultaneously with test marketing. Government 16.4 Single Brand product retail 100% trading Government (1) Foreign Investment in Single Brand product retail trading is aimed at 80 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ OF 1 BANK Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices. (2) FDI in Single Brand product retail trading would be subject to the following conditions: (a) Products to be sold should be of a ‘Single Brand' only. (b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India. (c) 'Single Brand' product-retail trading would cover only products which are branded during manufacturing. (d) The foreig....
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.... Persons resident outside India, other than Foreign Institutional Investors (FIIs), can invest in the capital of Asset Reconstruction Companies (ARCs) registered with Reserve Bank only under the Government Route. Such investments have to be strictly in the nature of FDI. Investments by FIIs are not permitted in the equity capital of ARCS. (ii) However, FIIs registered with SEBI can invest in the Security Receipts (SRs) issued by ARCs registered with Reserve Bank. FIIs can invest up to 49 per cent of each tranche of scheme of SRs, subject to the condition that investment by a single FII in each tranche of SRs shall not exceed 10 per cent 82 82 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE रिजरà¥à¤µ BANK बैंक OF 1 Sl.No. Sector/Activity of the issue. % of FDI Entry Route Cap/Equity (iii)Any individual investment of more than 10% would be subject to provisions of section 3(3) (f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 18 18.1 Banking –Private sector Banking -Private sector 18.2....
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....n insurance sector may be addressed to the Reserve Bank of India (RBI) for consideration in consultation with the Insurance | Regulatory and Development Authority (IRDA) in order to ensure that the 26 per cent limit of foreign shareholding applicable for the insurance sector is not being breached. (d) Transfer of shares under FDI from residents to non-residents will continue to require approval of RBI and Government as per para 3.6.2 above as applicable. (e) The policies and procedures prescribed from time to time by RBI and other institutions such as SEBI, D/o Company Affairs and IRDA on these matters will continue to apply. (f) RBI guidelines relating to acquisition by purchase or otherwise of shares of a private bank, if such acquisition results in any person owning or controlling 5 per cent or more of the paid up capital of the private bank will apply to non-resident investors as well. (ii) Setting up of a subsidiary by foreign banks (a) Foreign banks will be permitted to either have branches or ळ 84 19 19.1 à¤à¤¾à¤°à¤¤à¥€à¤¯ ESERVE BANK रिजरà¥à¤µ OF 1 ....
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....tures trading in commodities are regulated under the Forward Contracts (Regulation) Act, 1952. Commodity Exchanges, like Stock Exchanges, are infrastructure companies in the commodity futures market. With a view to infuse globally acceptable best practices, modern management skills and latest technology, it was decided to allow foreign investment in Commodity Exchanges. 2 For the purposes of this chapter, (i) "Commodity Exchange" is a recognized association under the provisions of the Forward Contracts (Regulation) Act, 1952, as amended from time to time, to provide exchange platform for trading in forward contracts in commodities. (ii) “recognized association†means an association to which recognition for the time being has been granted by the Central Government under Section 6 of the Forward Contracts (Regulation) Act, 1952 (iii) "Association†means any body of individuals, whether incorporated or not, constituted for the purposes of regulating and controlling the business of the sale or purchase of any goods and commodity derivative. (iv)"Forward contract†means a contract for the delivery of goods and wh....
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.... Directors based upon their shareholding. Infrastructure Company in the Securities Market Infrastructure companies in 49% (FDI & FII) Securities Markets, namely, stock exchanges, depositories and clearing corporations, in compliance with SEBI Regulations Other Conditions: [FDI limit of 26 per cent and an FII limit of 23 per cent of the paid-up capital ] FII can invest only through purchases in the secondary market Government (For FDI) Insurance Insurance Other Conditions: 26% Automatic (1) FDI in the Insurance sector, as prescribed in the Insurance Act, 1938, is allowed under the automatic route. (2) This will be subject to the condition that Companies bringing in FDI shall obtain necessary license from the Insurance Regulatory & Development Authority for undertaking insurance activities. Non-Banking Finance Companies (NBFC) 24 24.1 Foreign investment in NBFC 1S 100% Automatic allowed under the automatic route in only the following activities: (i) Merchant Banking (ii) Under Writing (iii) Portfolio Management Services (iv) Investment Advisory Services (v) Financial Consult....
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....s (b) Financial Consultancy (c) Forex Broking (d) Money Changing Business (e) Credit Rating Agencies (vii) This will be subject to compliance with the guidelines of RBI. Note: (i) Credit Card business includes issuance, sales, marketing & design of various payment products such as credit cards, charge cards, debit cards, stored value cards, smart card, value added cards etc. (ii) Leasing & Finance covers only financial leases and not operating leases. 90 90 Sl.No. Sector/Activity % of FDI Entry Route Cap/Equity (2) The NBFC will have to comply with the guidelines of the relevant regulator/ s, as applicable 25 Pharmaceuticals 25.1 Greenfield 100% Automatic 25.2 Existing Companies 100% Government à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE BANK INDIA- Annex - 2 (PART I, Section I, para 7 (c) (iii) (A) All Activities/ Sectors would require prior approval of the Government of India for FDI in accordance with the FDI policy issued by Government of India from time to time. (B) Sectors prohibited for FDI (a) Retail Trading (except single brand product retailing) (b) Lott....
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....shares purchased by a person resident outside India shall be remitted to India through normal banking channels. In case the buyer is a NRI, the payment may be made by way of debit to his NRE/FCNR (B)/Escrow accounts. However, if the shares are acquired on non-repatriation basis by NRI, the consideration shall be remitted to India through normal banking channel or paid out of funds held in NRE/FCNR (B)/NRO/Escrow accounts. 3.2. The sale proceeds of shares (net of taxes) sold by a person resident outside India may be remitted outside India. In case of FII, the sale proceeds may be credited to its special Non-Resident Rupee Account. In case of NRI, if the shares sold were held on repatriation basis, the sale proceeds (net of taxes) may be credited to his NRE /FCNR(B) accounts and if the shares sold were held on non repatriation basis, the sale proceeds may be credited to his NRO account subject to payment of taxes. 95 93 à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक BANK OF 3.3 The sale proceeds of shares (net of taxes) sold by an OCB may be remitted outside India dir....
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.... of transfer i.e. number of shares to be transferred, the name of the investee company whose shares are being transferred and the price at which shares are being transferred. ii. Where the Consent Letter has been signed by their duly appointed agent the Power of Attorney Document authorizing the agent to purchase/sell shares by the seller/buyer. In case there is no formal Sale Agreement, letters exchanged to this effect may be kept on record. iii. iv. V. vi. If the sellers are NRIs/OCBs, the copies of RBI approvals evidencing the shares held by them on repatriation/non-repatriation basis. The sale proceeds shall be credited to NRE/NRO account, as applicable. Certificate indicating fair value of shares from a Chartered Accountant. No Objection Tax Clearance Certificate from Income Tax authority/Chartered Accountant. Undertaking from the buyer to the effect that the Pricing Guidelines have been adhered to. Shares/convertible debentures of Indian companies purchased under Portfolio Investment Scheme by NRIs, OCBs cannot be transferred, by way of sale under private arrangement. Compliance is also to be ensured of t....
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....the manner indicated in Schedule IA (as under) 1. Father. 2. Mother (including step-mother). 3. Son (including stepson). 4. Son's wife. 5. Daughter (including step-daughter). 6. Father's father. 7. Father's mother. 8. Mother's mother. 9. Mother's father. 10. Son's son. 11. Son's son's wife. 12. Son's daughter. 13. Son's daughter's husband. 14. Daughter's husband. 15. Daughter's son. 16. Daughter's son's wife. 17. Daughter's daughter. 18. Daughter's daughter's husband. 19. Brother (including step-brother). 20. Brother's wife. 21. Sister (including step-sister). 22. Sister's husband. ******** ******** 97 97 à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE BANK INDIA- Annex - 6 [PART I, Section V, para 1 (i) ] Report by the Indian company receiving amount of consideration for issue of shares/Convertible debentures under the FDI Scheme (To be filed by the company through its Authorised Dealer Category - I bank, with the Regional Office of the Reserve Bank under whose jurisdiction the Registered Office of the company making the declaration is situated, not later than 30 days f....
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.... Section V, para 1 (iii) ] FC-GPR (To be filed by the company through its Authorised Dealer Category - I bank with the Regional Office of the RBI under whose jurisdiction the Registered Office of the company making the declaration is situated as and when shares / convertible debentures are issued to the foreign investor, along with the documents mentioned in item No. 4 of the undertaking enclosed to this Form) Permanent Account Number (PAN) of the investee company given by the Income Tax Department Date of issue of shares / convertible debentures Particulars No. 1. Name Address of the Registered Office (In Block Letters) State Registration No. given by Registrar of Companies Whether existing company or new company (strike off whichever is not applicable) If existing company, give registration number allotted by RBI for FDI, if any Telephone Fax Existing company / New company e-mail 101 3 à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE BANK OF 2. Description of the main business activity NIC Code Location of the project and NIC code for the district where the pro....
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....etary authorities. 103 à¤à¤¾à¤°à¤¤à¥€à¤¯ रिजरà¥à¤µ बैंक (e) SERVE BANK OF @please specify the nature (d) Total inflow (in Rupees) on account of issue of shares / convertible debentures to non- residents (including premium, if any) vide (i) Remittance through AD: (ii) Debit to NRE/FCNR A/c with Bank (iii) Others (please specify) Date of reporting of (i) and (ii) above to RBI under Para 9 (1) A of Schedule | to Notification No. FEMA 20 /2000-RB dated May 3, 2000, as amended from time to time. Disclosure of fair value of shares issued** We are a listed company and the market value of a share as on date of the issue is* We are an un-listed company and the fair value of a share is* ** before issue of shares 5. Post issue pattern of shareholding Investor category *(Please indicate as applicable) Equity Compulsorily convertible Preference Shares/ Debentures a) 01 Non-Resident Individuals 02 Companies 03 Fils 04 FVCIS 05 Foreign Trusts 06 07 Private Equity Funds Pension/ ....
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....d by a court in India. 105 à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE BANK OF I OR Shares are issued under ESOP and the conditions regarding this issue have been satisfied 3. Shares have been issued in terms of SIA/FIPB approval No._ dated 4. We enclose the following documents in compliance with Paragraph 9 (1) (B) of Schedule 1 to Notification No. FEMA 20/2000-RB dated May 3, 2000: (i) (ii) A certificate from our Company Secretary certifying that (a) (b) (c) (d) all the requirements of the Companies Act, 1956 have been complied with; terms and conditions of the Government approval, if any, have been complied with; the company is eligible to issue shares under these Regulations; and the company has all original certificates issued by authorised dealers in India evidencing receipt of amount of consideration in accordance with paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB dated May 3, 2000. A certificate from Statutory Auditors / SEBI registered Category I Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons....
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....inted agent and in the latter case the Power of Attorney Document. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India. Certificate indicating fair value of shares from a Chartered Accountant. Copy of Broker's note if sale is made on Stock Exchange. Declaration from the buyer to the effect that he is eligible to acquire shares / compulsorily and mandatorily convertible preference shares debentures/others under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with. Declaration from the FII/sub account to the effect that the individual FII / Sub account ceiling as prescribed has not been breached. Additional documents in respect of sale of shares / compulsorily and mandatorily convertible preference shares / debentures/others by a person resident outside India If the sellers are NRIs/OCBs, the copies of RBI approvals, if applicable, evidencing the shares held by them on repatriation/non-repatriation basis. No Objection/Tax Clearance Certificate from Income Tax Authority/ Chartered Account. 1 Name of the company Address (inclu....
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.... oil fields, etc.) to be transferred Date of the transaction 8 Foreign Investments in the company Where the shares / CMCPS/ debentures/others are listed on Stock Exchange Name of the Stock exchange Price Quoted on the Stock exchange Where the shares / CMCPS / debentures/others are Unlisted Price as per Valuation guidelines* Price as per Chartered Accountants * /** Valuation report (CA Certificate to be attached) Number of shares Face CMCPS/ debentures/others Negotiated Amount of value Price for in Rs. the consideration in Rs. transfer**in Rs. No. of shares Percentage Before the transfer After the transfer 111 à¤à¤¾à¤°à¤¤à¥€à¤¯ SERVE रिजरà¥à¤µ बैंक OF BANK Declaration by the transferor / transferee I/We hereby declare that : i. ii. iii. iv. The particulars given above are true and correct to the best of my/our knowledge and belief. I/ We, was/were holding the shares compulsorily and mandatorily convertible preference shares / debentures/others as ....
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....जरà¥à¤µ बैंक BANK X OF Annex - 10 [PART I, Section V, para 5] Form DR [Refer to paragraph 4(2) of Schedule 1] Return to be filed by an Indian Company who has arranged issue of GDR/ADR Instructions: The Form should be completed and submitted to the Reserve Bank of India, Foreign Investment Division, Central Office, Mumbai. 1. Name of the Company 2. Address of Registered Office 3. Address for Correspondence 4. 5. 6. 7. 8. 9. 10. Existing Business (please give the NIC Code of the activity in which the company is predominantly engaged) Details of the purpose for which GDRs/ADRs have been raised. If funds are deployed for overseas investment, details thereof Name and address of the Depository abroad Name and address of the Lead Manager/ Investment/Merchant Banker Name and address of the Sub-Managers to the issue Name and address of the Indian Custodians Details of FIPB approval (please quote the relevant NIC Code if the GDRs/ADRs are being issued under the Automatic Route) 11. Whether any overall sectoral cap for foreign investment i....
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....i) Banks Deposits (ii) Treasury Bills (iii) 10. Others (please specify) No. of GDRs/ADRs still outstanding 11. Company's share price at the end of the quarter 12. GDRs/ADRs price quoted on overseas stock exchange as at the end of the quarter Certified that the funds raised through GDRs/ADRs have not been invested in stock market or real estate. Sd/- Chartered Accountant Sd/- Authorised Signatory of the Company Terfrer à¤à¤¾à¤°à¤¤à¥€ SERVE व रिजरà¥à¤µ बैंक BANK X OF Annex - 12 Appendix List of Important Circulars/Notifications which have been consolidated in the Master Circular on Foreign Investments in India and investments in proprietary / partnership Notifications firms Sl.No. Notification 1. 2. 3. No. FEMA 32/2000-RB No. FEMA 35/2001-RB No. FEMA 41/2001-RB Date December 26, 2000 4. 5. 6. 7. No. FEMA 55/2002-RB 8. 9. 10. 11. 12. No. FEMA 101/2003-RB 13. No. FEMA 106/2003-RB 14. No. FEMA 108/2003-RB 15. 16. 17. 18. 19. No.FEM....
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...., 2002 November 12, 2002 November 23, 2002 January 13, 2003 January 13, 2003 February 3, 2003 March 27, 2003 May 5, 2003 August 20, 2003 September 1, 2003 September 16, 2003 October 17, 2003 November 14, 2003 December 3, 2003 21. A.P.DIR(Series) Circular No.39 December 3, 2003 22. A.P.DIR(Series) Circular No.43 December 8, 2003 23. A.P.DIR(Series) Circular No.44 December 8, 2003 24. AP (DIR Series) Circular No.53 December 17, 2003 25. 26. 27. 28. 29. 30. A.P.DIR(Series) Circular No.54 A.P.DIR(Series) Circular No.63 A.P.DIR(Series) Circular No.67 A.P.DIR(Series) Circular No.89 A.P.DIR(Series) Circular No.11 A.P.DIR(Series) Circular No.13 February 6, 2004 April 24, 2004 September 13, 2004 December 20, 2003 February 3, 2004 October 1, 2004 31. A.P.DIR(Series) Circular No.15 October 1, 2004 32 A.P.DIR(Series) Circular No.16 October 4, 2004 33. 34. 35. 36. 37. 38. 39. 40. AP (DIR Series) Circular No. 04 A.P. (DIR Series) Circular No. 06 A.P. (DIR Series) Circular No. 07 A.P. (DIR Series) Circular No. 08 ....