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.
Reserve Bank of India has vide RBI/2013-14/270A.P. (DIR Series) Circular No. 48 dated September 18, 2013 decided to expand the definition of Infrastructure for the purpose of ECB.The existing definition of infrastructure sector for the purpose of availing ECB includes: (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) sea port and airport (vi) industrial parks (vii) urban infrastructure (water supply, sanitation and sewage projects), (viii) mining, exploration and refining, (ix) cold storage or cold room facility, including farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat.
Taking into account the Harmonised Master List of Infrastructure sub-sectors and Institutional Mechanism for its updation approved by Government of India vide Notification F. No. 13/06/2009-INF dated March 27, 2012, RBI has decided to expand the existing definition for infrastructure sector for the purpose of availing ECB. The expanded infrastructure sector and sub-sectors for the purpose of ECB is mentioned in the circular.
In terms of RBI Notifications issued earlier, every exporter of goods or softwares had to give declaration in one of the forms (GR/PP/SDF/SOFTEX/Bulk SOFTEX) and submit it to the specified authority for certification. RBI has vide its notification RBI/2013-14/254 A.P. (DIR Series) Circular No.43 dated September 13, 2013 decided to simplify the existing form used for declaration of exports of Goods/Softwares and devised a common form called “Export Declaration Form” (EDF) to declare all types of export of goods from Non-EDI ports and a common “SOFTEX Form” to declare single as well as bulk software exports. The EDF will replace the existing GR/PP form used for declaration of export of Goods. The procedure relating to the exports of goods through EDI ports will remain the same and SDF form will be applicable as hitherto. Under the revised procedure, the exporters will have to declare all the export transactions, including those less than US$25000, in the form as applicable.
Reserve Bank of India will be extending the facilities to exporters for online generation of SOFTEX Form No. (Single as well as Bulk) for use in Off-Site Software exports, in addition to EDF Form No. (Present web-based process of generation of GR Form No. gets replaced) through its website www.rbi.org.in. The present facility of manual allotment of single as well bulk SOFTEX form number by Regional Offices of RBI would be dispensed with accordingly.
5. The Foreign Exchange Management Act (FEMA) requires exporters to complete the EDF/SOFTEX Form using the number so allotted and submit them to the specified authority first for certification and then to AD for necessary action as hitherto. This will come into force from October 1, 2013.
Overseas Direct Investment – Amendment
Reserve Bank Of India has vide notification no.RBI/2013-14/241 A.P. (DIR Series) Circular No. 41 dated 10/09/2013 issued an amendment to the notification A. P. (DIR Series) Circular No. 69 dated May 27, 2011on Overseas Direct Investment – Liberalization / Rationalization . The para 2(iv)(b) is to be read as under:“(b) Further, it has also been decided that issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval Route, provided the Indian Party indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.”
RBI has now vide its notification no. RBI/2013-14/285 A.P. (DIR Series) Circular No. 50 , dated 20/09/2013 decided to discontinue the practice of forwarding the statement in Form ORA to the respective Regional Office of Reserve Bank by the Authorized Dealers. Authorized Dealers are advised to continue the maintenance of particulars of approvals granted for opening of Trading Office / Non-Trading Office / Branch Office/ Representative Office at their end.
2. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.