External Commercial Borrowings (ECB) for Civil Aviation Sector The Reserve Bank of India had earlier issued a circular in terms of which External Commercial Borrowings (ECB) could be raised by airline companies for working capital as a permissible end-use, under the approval route. The scheme was extended until 31st December, 2013. RBI has now vide …
External Commercial Borrowings (ECB) – Reporting arrangements The Reserve Bank of India has issued the circular no. A.P.(DIR Series) Circular No. 105 dated 17th February, 2014 modifying the ECB 2 –Return to Capture the details of the financial hedges contracted by corporates, of their foreign currency exposure relating to ECB and their foreign currency earnings …
Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity: RBI had vide its circular A.P. (DIR Series) Circular No. 15 dated October 1, 2004, informed that an Indian company can issue equity shares against External Commercial Borrowings (ECB) subject to conditions mentioned therein and pricing guidelines as prescribed by the Reserve Bank from time …
Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds: RBI had earlier imposed restrictions on persons resident in India who have borrowed in Rupees from a person resident outside India to the effect that such borrowed funds cannot be used for any investment, whether …
Foreign Direct Investment in Financial Sector – Transfer of Shares As per the existing FEMA regulations, in case of transfer of shares from Residents to Non-Residents where the investee company is in the financial services sector, No Objection Certificate (NoC) is required to be obtained from the respective financial sector regulator/regulators of the investee …
Foreign Direct Investment (FDI) in India –definition of ‘group company’ Reserve Bank of India has reviewed the extant FDI Policy so as to incorporate the definition for ‘group company’. The same has been announced by RBI vide its notification RBI/2013-14/356 A.P. (DIR Series) Circular No.68 dated November 01, 2013. As per the definition, ‘Group company’ …
Unlisted Indian Companies allowed on a pilot basis for a period of two years to list and raise capital abroad without the requirement of prior or subsequent listing in india: Ministry of Finance (MoF), has vide its notification (number GSR 648[E][F.No.4/13/2012-ECB], 2013) dated 11 October 2013 (Notification), amended the Issue of Foreign Currency Convertible Bonds …
Opening of Trading Office / Non-Trading Office / Branch Office/ Representative Office abroad- RBI had vide its notification informed that the, statement in Form ORA was to be submitted to the Regional Offices of Reserve Bank on half yearly basis instead of on a monthly basis by the Authorized Dealers. RBI has now vide its …
Overseas Direct Investments – Rationalization/Clarifications – Reserve Bank of India has vide notification RBI/2013-14/220 A.P. (DIR Series) Circular No.30 dated 4th September, 2013 issued clarifications on revised guidelines pertaining to Overseas Direct Investment (ODI) by Indian companies, which was notified on August 14, 2013 wherein RBI has clarified as under: That all the financial commitments …
Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation. The RBI has, vide circular no. RBI/2013-14/147 A.P (DIR Series) Circular No. 14, dated 22.07.2013, made clarifications on time period for repatriation & realisation of export proceeds. According to the Circular No. A.P. (DIR Series) Circular No. 52, dated 20.11.2012, the …
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