1. Revision in Bank Rate and change in Bank Rate: RBI has vide its two Circulars dated 15th January, 2015 announced that the bank rate has adjusted from 9% to 8.75% w.e.f January 15, 2015. All penal interest rates linked to the Bank Rate are also revised as follows: Item Existing Rate Revised Rate Penal …
1. Overseas Investments by Alternative Investment Funds (AIF) Reserve Bank of India (“RBI”) has vide its Circular No.48 dated December 09, 2014, decided to permit an Indian Alternative Investment Fund (“AIF”), registered with SEBI, to invest overseas in terms of the provisions issued under the A.P. (DIR Series) Circulars No. 49 and 50 dated April …
1. Routing of funds raised abroad to India Reserve Bank of India (“RBI”) has vide Circular No. 41 dated 25th November, 2014 clarified that Indian companies or their AD Category – I banks are not allowed to issue any direct or indirect guarantee or create any contingent liability or offer any security in any form …
1. Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses RBI has vide circular RBI/2014-15/257 A.P. (DIR Series) Circular No.35 dated 9th October, 2014 decided to permit remittances to the Prime Minister’s National Relief Fund through the Exchange Houses subject to the condition that the remittances …
1. Foreign Direct Investment (FDI) in India – Issue of equity shares under the FDI Scheme against legitimate dues: An Indian company under the automatic route may issue shares/convertible debentures to a person resident outside India against lump-sum technical know-how fee, royalty External Commercial Borrowings (ECBs) (other than import dues deemed as ECB or Trade …
1. External Commercial Borrowings (ECB) in Indian Rupees RBI has with a view to provide greater flexibility for structuring of ECB arrangements announced vide its circular RBI/2014-15/207 A.P. (DIR Series) Circular No.25 dated September 3, 2014, that recognised non-resident ECB lenders may extend loans in Indian Rupees subject to the following conditions: The lender should …
1. Constitution of Special Investigating Team – sharing of information. In pursuance of the Hon’ble Supreme Court Judgment dated July 4, 2011, Government of India has constituted a Special Investigation Team (SIT) under the Chairmanship of Hon’ble Justice M.B. Shah. In this regard, the Hon’ble Supreme Court has directed that: “All organs agencies, departments and …
Financial Commitment (FC) by Indian Party under Overseas DirectInvestments (ODI) – Restoration of Limit The Reserve Bank of India (“RBI”) has issued a circular A.P. (DIR Series) Circular No.1 dated July 3, 2014 restoring the limit of Overseas Direct Investments (ODI)/ Financial Commitment (FC) to be undertaken by an Indian Party under the automatic route …
Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFCs Reserve Bank of India has vide its circular DNBS (PD) CC.No.376/03.10.001/2013-14 dated May 26, 2014 notified that NBFCs both Deposit accepting and non-deposit accepting registered with RBI will requiring prior written approval of the Reserve Bank in the following …
Foreign Direct Investment (FDI) in India – Reporting mechanism for transfer of equity shares/ fully and mandatorily convertible preference shares/ fully and mandatorily convertible debentures As per Reserve Bank of India’s circular dated September 6, 2013, a non-resident (NR) [including a Non Resident Indian (NRI)], who has acquired and continues to hold control in an …
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