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Import of Gold by Nominated Banks /Agencies

RBI/2012-13/557 A.P. (DIR Series) Circular No. 122 June 27, 2013 To All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange/ All agencies nominated for import of gold Madam/Sir Import of Gold by Nominated Banks /Agencies Attention of Authorised Persons is drawn to our A.P. (DIR Series) Circular No. 103 dated May 13, 2013 & A.P. [...]

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RBI Notification on Risk Management and Inter Bank Dealings

RBI//2012-13/554 A.P. (DIR Series) Circular No.121 June 26, 2013 To All Authorised Dealer Category – I Banks Madam / Sir, Risk Management and Inter Bank Dealings Attention of Authorized Dealers Category – I (AD Category – I) banks is invited to section C of the Annex to A.P.(DIR Series) Circular No. 32 dated December 28, 2010  [...]

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RBI includes Import of Services, Technical know-how and License Fees within the ECB Policy

RBI/2012-13/552 A.P. (DIR Series) Circular No.119 June 26, 2013 To All Authorised Dealer Category – I Banks Madam / Sir, External Commercial Borrowings (ECB) Policy – Import of Services, Technical know-how and License Fees Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) [...]

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RBI Notification on Project and Services Export

RBI/2012-13/548 A.P. (DIR Series) Circular No.118 June 26, 2013 To All Authorised Dealer Category – I Banks Madam / Sir, Export of Goods and Services – Project Exports Attention of Authorized Dealers is invited to Para B.7 (i) and C.5 (i) of Memorandum of Instructions on Project and Service Exports (PEM), enclosed to A.P.(DIR Series) Circular [...]

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External Commercial Borrowings (ECB) in Renminbi (RMB)

RBI/2012-13/546 A.P. (DIR Series) Circular No. 117 June 25, 2013 To, All Authorized Dealer Category – I Banks Madam / Sir External Commercial Borrowings (ECB) in Renminbi (RMB) Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 30 dated September 27, 2011 on the captioned subject in terms of which [...]

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External Commercial Borrowings (ECB) for Civil Aviation Sector

RBI/2012-13/545 A.P. (DIR Series) Circular No. 116 June 25, 2013 To, All Authorized Dealer Category – I Banks Madam / Sir External Commercial Borrowings (ECB) for Civil Aviation Sector Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the A.P. (DIR Series) Circular No. 113 dated April 24, 2012 on the captioned subject. 2. In [...]

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Buyback / prepayment of Foreign Currency Convertible Bonds (FCCBs)

RBI/2012-13/544 A.P. (DIR Series) Circular No. 115 June 25, 2013 To, All Authorized Dealer Category – I Banks Madam / Sir Buyback / prepayment of Foreign Currency Convertible Bonds (FCCBs) Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 39 dated December 08, 2008, A.P. (DIR Series) Circular No. 75 [...]

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External Commercial Borrowings (ECB) Policy for 3G spectrum allocation

RBI/2012-13/543 A.P. (DIR Series) Circular No. 114 June 25, 2013 To, All Authorized Dealer Category – I Banks Madam / Sir External Commercial Borrowings (ECB) Policy for 3G spectrum allocation Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 28 dated January 25, 2010 relating to External Commercial Borrowings (ECB) [...]

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RBI Notification on External Commercial Borrowings (ECB) for the low cost affordable housing projects

RBI/2012-13/539 A.P. (DIR Series) Circular No. 113 June 24, 2013 To All Authorised Dealer Category –I Banks Madam / Sir External Commercial Borrowings (ECB) for the low cost affordable housing projects Attention of Authorized Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No. 61 dated December 17, 2012 on [...]

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Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR

RBI/2012-13/537 A.P. (DIR Series) Circular No. 112 June 20, 2013 To All Category – I Authorised Dealer Banks Madam / Sir, Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No.95 dated [...]

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Foreign Direct Investment (FDI) into a Small Scale Industrial Undertakings (SSI) / Micro & Small Enterprises (MSE) and in Industrial Undertaking manufacturing items reserved for SSI/MSE

RBI/2013-14/498
A.P. (DIR Series) Circular No.107

February 20, 2014

To

All Category – I Authorised Dealer Banks

Madam / Sir,

Foreign Direct Investment (FDI) into a Small Scale Industrial Undertakings (SSI) / Micro & Small Enterprises (MSE) and in Industrial Undertaking manufacturing items reserved for SSI/MSE

Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to Schedule 1 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank vide Notification No. FEMA. 20/2000-RB dated 3rd May 2000, as amended from time to time.

2. In terms of the Schedule 1 of the Notification, ibid, an Indian company which is a small scale industrial unit and which is not engaged in any activity or in manufacture of items included in Annex A, may issue shares or convertible debentures to a person resident outside India, to the extent of 24% of its paid -up capital provided that such company may issue shares in excess of 24% of its capital if:

(a) it has given up its small scale status,

(b) it is not engaged or does not propose to engage in manufacture of items reserved for small scale sector, and

(c) it complies with the ceilings specified in Annex B to Schedule I of the Notification.

3. With the promulgation of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the extant policy for foreign direct investment (FDI) in Small Scale Industrial unit and in a company which has de-registered its small scale industry status and is not engaged or does not propose to engage in manufacture of items reserved for small scale sector, has since been reviewed and it has been decided that;

  1. a company which is reckoned as Micro and Small Enterprises (MSE) (earlier Small Scale Industries) in terms of MSMED Act, 2006 and not engaged in any activity/sector mentioned in Annex A to schedule 1 to the Notification, ibid may issue shares or convertible debentures to a person resident outside India, subject to the limits prescribed in Annex B to schedule 1, in accordance with the entry routes specified therein and the provision of Foreign Direct Investment Policy, as notified by the Ministry of Commerce & Industry, Government of India, from time to time.

  2. any Industrial undertaking, with or without FDI, which is not an MSE, having an industrial license under the provisions of the Industries (Development & Regulation) Act, 1951 for manufacturing items reserved for manufacture in the MSE sector may issue shares in excess of 24per cent of its paid up capital with prior approval of the Foreign Investment Promotion Board of the Government of India.

4. Further, in terms of the provisions of MSMED Act, (i) in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951, a micro enterprise means where the investment in plant and machinery does not exceed twenty five lakh rupees; a small enterprise means where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; (ii) in the case of the enterprises engaged in providing or rendering services, a micro enterprise means where the investment in equipment does not exceed ten lakh rupees; a small enterprise means where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees.

5. Copy of Press Note No. 6(2009) dated September 4, 2009 issued by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India in this regard is enclosed.

6. AD Category – I banks may bring the contents of the circular to the notice of their customers/constituents concerned.

7. Reserve Bank has since amended the Regulations and notified vide Notification No. FEMA. 230/2012-RB dated May 29, 2012, notified vide. G.S.R. No.797(E) dated October 30, 2012 read with Corrigendum dated September 10, 2013 notified vide. G.S.R. No.624(E) dated September 12, 2013 .

8. 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,

(Rudra Narayan Kar)
Chief General Manager In-Charge

Facilities to NRIs/PIOs and Foreign Nationals – Liberalisation – Reporting Requirement

RBI/2013-14/496
A.P (DIR Series) Circular No. 106

February 18, 2014

To,
All Category- I Authorised Dealer Banks

Madam / Sir,

Facilities to NRIs/PIOs and Foreign Nationals – Liberalisation – Reporting Requirement

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No. 12 dated November 16, 2006 in terms of which the lock-in period of 10 years for remittance of sale proceeds of immovable property was dispensed with and AD Category – I banks could allow remittances out of balances in NRO accounts including sale proceeds of immovable property provided the amount does not exceed USD one million per financial year (April-March). In terms of the circular ibid, AD – Category I banks were required to furnish on a quarterly basis, to the Chief General Manager-in-Charge, Foreign Exchange Department, Foreign Investments Division (NRFAD), Reserve Bank of India, Central Office, Mumbai-400001 within 10 days of the reporting quarter, a statement on the number of applicants and total amount remitted, as per proforma annexed to it.

2. With a view to having access to more real time data, it has been decided to collect this information on a monthly basis. Accordingly, AD – Category I banks may furnish on a monthly basis, a statement on the number of applicants and total amount remitted, as per proforma annexed, to the Chief General Manager-in-Charge, Foreign Exchange Department, Foreign Investments Division (NRFAD), Reserve Bank of India, Central Office, Mumbai-400001 within 7 days of the end of the reporting month. The data may be sent preferably by e-mail as per the proforma.

3. It may be noted that the proforma has been revised to also include “Transfers from NRO to NRE account”.

4. AD Category- I banks may bring the contents of the circular to the notice of their constituents 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.

Yours faithfully,

(C D Srinivasan)
Chief General Manager


Annexure

Statements indicating the details of remittances made by NRIs/PIOs Foreign nationals out of the NRO accounts for the month ended

Name of the bank:

No. of remittance on account of

Amount in USD

Sale proceeds of immovable property Other assets Transfers from NRO to NRE account Total Sale proceeds of immovable property Other assets Transfers from NRO to NRE account Total
               

Signature of the authorised official:

Name and Designation:

Date:

External Commercial Borrowings (ECB) – Reporting arrangements

RBI/2013-14/495
A. P. (DIR Series) Circular No. 105

February 17, 2014

To
All Category-I Authorised Dealer Banks

Madam / Sir,

External Commercial Borrowings (ECB) – Reporting arrangements

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, as amended from time to time and A.P. (DIR Series) Circular No.60 dated January 31, 2004 relating to reporting arrangements for ECB.

2. In order to capture details of the financial hedges contracted by corporates, of their foreign currency exposure relating to ECB and their foreign currency earnings and expenditure, the format of ECB-2 Return has been modified (Part-E) and the same has been given in the Annex. The reporting in the modified ECB-2 Return will be applicable from the return of the month April 2014 onwards.

3. There is no change in the reporting procedure and corporates raising ECB continue to submit ECB-2 Return on a monthly basis duly certified by the designated AD Category-I bank so as to reach Department of Statistics and Information Management (DSIM) of Reserve Bank of India within seven working days from the close of month to which it relates.

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

5. The directions contained in this circular has been issued under sections 10(4) and 11(2) 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,

(Rudra Narayan Kar)

Chief General Manager-in-Charge

 

Foreign Exchange Management Act – Emerging Issues and Recent Developments – VCCircle

Foreign Exchange Management Act -  Emerging Issues and Recent Developments

India is one of the largest FDI destinations in the world with the relaxation of foreign exchange restrictions, there has been a significant flow of investments into India. At the same time, Indian businesses have been making investments and acquisitions overseas. With the inbound and outbound investments rising, it is essential to understand the rules, regulations and policies that govern such capital inflows and outflows. All transactions involving foreign exchange fall under preview of Foreign Exchange Management Act (FEMA) read with FDI policy.

VCCircle Training is organising a one-day training programme on latest trends in FEMA. The one day course will identify the practical issues and help create a broader understanding of the foreign exchange laws and policy in India.

Why you should attend: 

  • To get complete understanding of regulation of Foreign Exchange Transactions
  • To understand critical points relating to entry strategy in India (including downstream investment)
  • Inbound and Outbound investment strategy – recent changes
  • Procedures and hiccups in raising International Finance
  • Discussion over remittances (LRS, NRO account etc)
  • Corporate guarantees , External commercial Borrowings and ESOPs
  • To understand the effect of latest changes brought in by government policies (retail, Civil aviation   etc)
  • To understand the AIF regulations and regulations relating to  FVCI , FII in complete clarity
  • To understand how effective and bullet proof FDI policy of India is vis a vis other countries  

Agenda:

1.    Session 1: Overview of FEMA and FDI Policy

  • Basics (Current and Capital account transactions, Automatic and Approval route, Complete introduction of all rules regulations and Master circular under FEMA and Changes thereof, Fuller account Convertibility, Balance of Payment, dividend balancing, Introduction of regulatory setup – DIPP, FIPB, RBI  etc)
  • FDI Policy – Recent changes in the FDI policy(Multi Brand Retail Trading, Construction Sector, Civil Aviation).
  •  Manner of functioning of Indian FDI policy vis a vis emerging economies.

 2.    Session 2: Investment Policies

  • Investment in Liaison Office/Branch office/Company /Joint ventures/LLPs – Recent changes and developments
  • FII and FVCI including AIF
  • Drafting of shareholders agreement (brief discussion over relevant clauses)
    Funding of subsidiaries
  • Key points to be considered while making Downstream Investment
    Pointers for Valuation of securities (especially convertible debentures)
  • Merger / acquisition – Developments
  • Regulations, Reporting, Compliances and compounding procedures
  • Do and do not’s of investor and investee companies

 3.    Session 3: Outbound investment policy

  • Recent changes
  • Drafting of agreement
  • Precautions while making an investment
  • Reporting requirements , Compliances and procedures
  • Loan to WOS/pledge of shares
  • Manner, mode and funding of investment
  • Corporate goals sync in foreign territories
  • ESOPs to non – resident employees – practical problem
  • FEMA vis a vis Double taxation avoidance agreement

 4.    Session 4: International Finance

  • External commercial Borrowing – recent changes
  • ECB vis a vis other mode of financing (domestic finance/ADR/GDR) – cost benefit analysis
  • Drafting of ECB agreements (points to be considered)
  • Drafting of Corporate Guarantees
  • Trade credit why useful
  • Reporting requirement
  • Corporate Guarantees, Trade credit and structured obligations
  • Hedging of Risk

Experts:

  • Sunil Kumar- Partner, Rajani, Singhania & Partners
  • Atul Mittal – Director, Deloitte Touche Tohmatsu India Pvt. Ltd
  • Dipak Rao – Senior Partner, Rajani, Singhania & Partners

Registration Details:

Date of Training: 21st February, New Delhi

Standard Fee: INR 15,000 plus 12.36% Service Tax

Early Bird Discount: 25% Discount till 14th February – i.e. INR 11,250 + 12.36% (Service Tax) for all patrons of Corporate Law Reporter.

For Further Information, Contact:

For registrations and group discount please contact: Biplab SenGupta | T: +91-120-4171140 | M: +91-8130826342 | Email address: [email protected]           

Please fill the following form to express interest. Someone from the organizer will get in touch with you.  

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5th Annual FEMA Summit 2014

The Foreign Exchange Management Act (FEMA) is a 1999 Indian law ”to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”. This act seeks to make offenses related to foreign exchange civil offenses. It extends to the whole of India, replacing FERA, which had become incompatible with the pro-liberalisation policies of the Government of India. It enabled a new foreign exchange management regime consistent with the emerging framework of the World Trade Organisation (WTO). The enactment of FEMA also brought with it the Prevention of Money Laundering Act of 2002, which came into effect from 1 July 2005.

The buying and selling of foreign currency and other debt instruments by businesses, individuals and governments happens in the foreign exchange market. Apart from being very competitive, this market is also the largest and most liquid market in the world as well as in India. It constantly undergoes changes and innovations, which can either be beneficial to a country or expose them to greater risks. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. Central banks would work towards an orderly functioning of the transactions which can also develop their foreign exchange market. The need for the management of foreign exchange is important. It is necessary to keep adequate amount of foreign exc from Import Substitution to Export Promotion.

This two day event will provide an exclusive forum for participants to understand the FEMA Regulations, FDI Policy, AML framework and regulators view on various aspects of Anti money laundering compliance with topics on regulatory expectations, recent developments and new regulations in anti-money laundering compliance and discuss challenges faced by financial institutions presented by regulators, law enforcement professionals and anti money laundering specialist.

Schedule:-

Date – 17th and 18th April
Venue – Hotel Novotel, Juhu
Knowledge Partners – Deloitte and MPC Legal

Regulatory and Industry Experts also to join in

Registration Fees:-

No. of Delegates

Regular Fees

Early Bird Discount

1 Delegate

INR 16, 995

INR 14, 000

3 Delegates

INR 50, 985

INR 37, 500

Table ( 5 Delegates)

INR 84, 975

INR 60, 000

  • Additional 12.36% service tax
  • Early bird ends on 10th March
  • Above mentioned fees is for both days

Organisers:

Achromic Point Consulting Pvt. Ltd.

303 – 305, Sarda Chambers – IV 3rd Floor, L.S.C. Kalkaji

New Delhi – 110019, India

D: +91 11 2628 1521

M: +91 844 775 8763

E: [email protected]

W: www.achromicpoint.com

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RBI Clarification on Facilities for Persons Resident outside India

RBI/2013-14/454 A.P. (DIR Series) Circular No.96 January 20, 2014 To All Category – I Authorised Dealer Banks Madam / Sir, Facilities for Persons Resident outside India – Clarification Attention of Authorized Dealers Category – I (AD Category- I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, [...]

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Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity

RBI/2013-2014/449 A.P. (DIR Series) Circular No. 94 January 16, 2014 To All Category – I Authorised Dealer banks Madam/Sir, Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity Attention of Authorised Dealer (AD) banks is invited to A.P. (DIR Series) Circular No. 15 dated October 1, 2004 on the captioned subject. 2. In terms of the [...]

The post Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity .

Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission

RBI/2013-14/447 A.P. (DIR Series) Circular No.93 January 15, 2014 To All Authorised Dealer Category – I Banks Madam / Dear Sir Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission Attention of Authorised Dealer Category –I (AD Category – I) banks is invited to Regulation 4 of Notification No.FEMA.22/2000-RB [...]

The post Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission .

Foreign Direct Investment- Pricing Guidelines for FDI instruments with optionality clauses

RBI/2013-2014/436 A.P. (DIR Series) Circular No. 86 January 9, 2014 All Category – I Authorised Dealer banks Madam/Sir, Foreign Direct Investment- Pricing Guidelines for FDI instruments with optionality clauses Attention of Authorised Dealers is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification [...]

The post Foreign Direct Investment- Pricing Guidelines for FDI instruments with optionality clauses .