Regulation 15 - Obligations of the Indian Party - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004

15. Obligations of the Indian Party An Indian Party, which has acquired foreign security in terms of the Regulations in Part- I, shall - i. receive share certificates or any other document as an evidence of investment in the foreign entity to the satisfaction of the Reserve Bank within six months, or such further period as Reserve Bank may permit, from the date of effecting remittance or the date on which the amount to be capitalised became due to the Indian Party or the date on which the amount due was allowed to be capitalised; ii. repatriate to India, all dues receivable from the foreign entity, like dividend, royalty, technical fees etc., within 60 days of its falling due, or such further period as the Reserve Bank may permit; 1 Provided that in the case of investment in securities in Bhutan made in freely convertible currency, all dues receivable thereon as are repatriable, including those on account of disinvestment/ dissolution/ winding up, shall be realised and repatriated in freely convertible currency only. 7 [(iii) submit to the Reserve Bank, through the designated Authorised Dealer, every year on or before a specified date, an Annual Performance Report (APR) in Part III of Form ODI , as prescribed by the Reserve Bank from time to time, in respect of each JV or WOS outside India, and other reports or documents as may be prescribed by the Reserve Bank from time to time. The APR, so required to be submitted, has to be based on the audited annual accounts of the JV / WOS for the preceding year, unless specifically exempted by the Reserve Bank.] 4 [ ( iv ) Indian companies, which have made overseas direct investments under the provisions of this Notification, shall submit an 'Annual Return on Foreign Liabilities and Assets' in the format and by a specified dates prescribed by the Reserve Bank from time to time, to the Director, Balance of Payment Statistics Division, Department of Statistics and Information Management (DSIM), Reserve Bank of India, C-9, 8th Floor, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051. ] 6 [ (v) Where the law of the host country does not mandatorily require auditing of the books of accounts of JV/WOS, the Annual Performance Report (APR) as referred to under sub-regulation (iii) above, may be submitted by the Indian party based on the un-audited annual accounts of the JV/WOS provided: 8 [The Statutory Auditors of the Indian Party certify that law of the host country does not mandatorily require auditing of the books of accounts of JV/WOS and the figures in the APR are as per the un-audited accounts of the overseas JV/ WOS] b. That the un-audited annual accounts of the JV/WOS has been adopted and ratified by the Board of the Indian party. ] 9 [(c) The above exemption from filing the APR based on unaudited balance sheet will not be available in respect of JV/WOS in a country / jurisdiction which is either under the observation of the Financial Action Task Force (FATF) or in respect of which enhanced due diligence is recommended by FATF or the any other country/jurisdiction as prescribed by Reserve Bank of India. Explanation - It will be in order for individual partners to hold shares for and on behalf of the firm in an overseas JV/WOS in the individual name if the host country regulations or operational requirements warrant such holdings, subject to the condition that the entire funding for such investment is done by the firm. -------------------------- Notes:- 1. Has been inserted vide Notification No. 135/2005 dated 17/5/2005 2. Has been substituted vide Notification No. 180/2008 dated 5/9/2008 before it was read as, iii. submit to the Reserve Bank every year within 60 days from the date of expiry of the statutory period as prescribed by the respective laws of the host country for finalisation of the audited accounts of the Joint Venture/Wholly Owned Subsidiary outside India or such further period as may be allowed by Reserve Bank, an annual performance report in form APR in respect of each Joint Venture or Wholly Owned Subsidiary outside India set up or acquired by the Indian Party and other reports or documents as may be stipulated by the Reserve Bank. 3. Substituted vide Notification No. FEMA 249/RB-2012, dated 22-11-2012 , before it was read as:- (iii) submit to the Reserve Bank through the Authorised Dealer every year within 60 days from the date of expiry of the statutory period as specified by the respective laws of the host country for finalization of the audited accounts of the Joint Venture/Wholly Owned Subsidiary outside India or such further period as may be allowed by Reserve Bank, an Annual Performance Report in Form ODI Part III in respect of each Joint Venture or Wholly Owned Subsidiary outside India set up or acquired by the Indian Party and other reports or documents as may be specified by the Reserve Bank from time to time. , the following shall be substituted and the same shall be deemed to have substituted from September 12, 2012: 4. Inserted vide Notification No. FEMA 249/RB-2012, dated 22-11-2012 w.e.f. March 15, 2011 5. Inserted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012 6. Corrected vide CORRIGENDUM - No. 1/37/EM/2012 - G.S.R. 112(E) - Dated 5-2-2014 , before it was read as, 5 [(iv) Where the law of the host country does not mandatorily require auditing of the books of accounts of JV / WOS, the Annual Performance Report (APR) as referred to under sub-regulation (iii) may be submitted by the Indian party based on the un-audited annual accounts of the JV / WOS provided: The Statutory Auditors of the Indian party certify that The un-audited annual accounts of the JV / WOS reflect the true and fair picture of the affairs of the JV / WOS and That the un-audited annual accounts of the JV / WOS has been adopted and ratified by the Board of the Indian party.] 7. Substituted vide NOTIFICATION No. FEMA 314/RB-2014, dated 3rd July, 2014 , before it was read as, 2 [(iii) submit to the Reserve Bank, through the designated Authorised Dealer, every year on or before a specified date, an Annual Performance Report (APR) in Part III of Form ODI in respect of each JV or WOS outside India, and other reports or documents as may be prescribed by the Reserve Bank from time to time. The APR, so required to be submitted, has to be based on the audited annual accounts of the JV/WOS for the preceding year, unless specifically exempted by the Reserve Bank.] 8. Substituted vide Notification No. FEMA. 369/2017-RB, Dated 14-11-2017, before it was read as, a. The Statutory Auditors of the Indian party certify that The un-audited annual accounts of the JV/WOS reflect the true and fair picture of the affairs of the JV/WOS and 9. Inserted vide Notification No. FEMA. 369/2017-RB, Dated 14-11-2017