Regulation 13 - Submission of Information to Reserve Bank - Foreign Exchange Management (Transfer Or Issue of Any Foreign Security) Regulations, 2000

Has been superseded vide Notification No. 120/2004 dated 7/7/2004 13. Submission of Information to Reserve Bank (1) Where the Indian Party holds 50% or more of the paid-up capital of the foreign entity and (i) the foreign entity has been in operation for a period of less than two years; or (ii) the Indian Party has not repatriated the amount of dividends, fees and royalties due to it from the foreign entity; or (iii) proceeds of exports to the foreign entity have not been realised in accordance with the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, or (iv) additional capital contribution will be required from India; or (v) the percentage of equity shareholding of the Indian Party in the foreign entity is being reduced otherwise than in pursuance of the laws of the host country, the Indian Party shall not consent to the decision relating to the following subject matters, without prior approval of the Reserve Bank - (a) undertaking any activity other than the activity in which the foreign entity was engaged/or proposed to be engaged at the time of investment by the Indian party; or (b) participation in the capital of another foreign entity; or (c) alteration of the company's capital structure, authorised or issued, or its shareholding pattern. (2) The restriction contained in sub-regulation(1) shall not apply where the investment in the foreign entity is entirely made out of balances held in Exchange Earners Foreign Currency account of the Indian Party and/or out of foreign currency resources raised by the Indian Party through ADR/GDR issue.