FDI by Citizen/Entity incorporated in Bangladesh - FEMA - 022/2007

FDI by Citizen/Entity incorporated in Bangladesh RBI/2007-2008/215 A. P. (DIR Series) Circular No. 22 December 19, 2007 To All Category - I Authorised Dealer banks Madam / Sir, Foreign Direct Investment by citizen / entity incorporated in Bangladesh Attention of Authorised Dealer (AD Category - I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 and as amended from time to time. 2. In terms of sub-regulation (1) of Regulation 5 of the Notification ibid, a person resident outside India (other than a citizen of Bangladesh or Pakistan) or an entity incorporated outside India (other than an entity in Bangladesh or Pakistan), may purchase shares or convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in Schedule I to the Notification No. FEMA 20 . The Reserve Bank has since amended the Regulations and notified vide FEMA Notification No. 167 dated October 23, 2007 (copy enclosed). 3. Accordingly, a person who is a citizen of Bangladesh or an entity incorporated in Bangladesh may, with the prior approval of the Foreign Investment Promotion Board of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in Schedule 1 to Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as amended from time to time. 4. AD Category - I banks may bring the contents of the circular to the notice of their customers and constituents concerned. 5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, ( Salim Gangadharan ) Chief General Manager