Capitalisation of Lumpsum Fee / Royalty / ECB – Liberalisation

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..... talisation of Lumpsum Fee / Royalty / ECB - Liberalisation Attention of Authorised Dealers is invited to Regulation 5(1) of Notification No.FEMA.20/2000-RB dated May 3, 2000 and paragraph 8 of Schedule I thereto, in terms of which issue of shares or convertible debentures under Foreign Direct Investment Scheme by a company in India to a person resident outside India (other than a citizen of Ban .....

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..... tic route or SIA/FIPB route, is subject to the pricing guidelines of Reserve Bank/SEBI. 4. It has been clarified by the Government that the words 'import payables' appearing in the Press Note refer only to payables towards import of technical know-how and other items mentioned under paragraph 2 above. Import dues by Indian companies, which are deemed as Trade (buyers'/suppliers') Credit or ECBs .....

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..... ident outside India is permitted only against inward remittance of convertible foreign exchange through normal banking channels or by debit to NRE / FCNR account of the person concerned maintained with an authorised foreign exchange dealer / bank. 2. As a part of the ongoing process of liberalisation, it has been decided to permit issue of equity shares against lumpsum fee, royalty and External .....

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