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TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) ( Second Amendment) Regulations, 2003X X X X Extracts X X X X X X X X Extracts X X X X ..... l come into force from the date of their publication in the Official Gazette. Amendment of the Regulations :- 2. In the Foreign Exchange Management( Transfer or Issue of Security by a person Resident outside India) Regulations, 2000, In Regulation 2, after item (vii), the following item shall be inserted, namely:- (vii) (a) ' Non-resident Indian (NRI) shall have the meaning assigned to it in clause (iv) of Regulation 2 of the Foreign Exchange Management (Investment in Firm or Proprietary Concern in India) Regulations, 2000.' in item (viii), the words ' Non-resident Indian (NRI)' shall be deleted; B. After Regulation 6, the following Regulations shall be inserted, namely:- ' 6A. Acquisition of Bonus shares :- An Indian company may issue bonus shares to its non-resident shareholders, subject to the following conditions: a. the shares against which bonus shares are issued by the company ( hereinafter referred to as 'the original shares') were acquired or held by the non-resident shareholder in accordance with the Rules/ Regulations applicable to such acquisition; b. the bonus shares acquired by the non-resident shareholder shall be subject to the same conditions including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DRs Price of ADRs/GDRs to be issued to a person resident outside India may be decided by the Indian company- a. where the issue is on public offer basis, in consultation with the Lead Manager to the issue; and b. in other cases , as provided in paragraph 5 above.' c. In paragraph 6, in clause (a), after sub-clause (ii), the following shall be added, namely: to obligations arising out of dividends declared/remitted after 14th July 2000 i.e. the date on which conditions of dividend balancing was withdrawn' In paragraph 6, the existing sub-clause (b) shall be deleted Annexure A may be substituted with amended Annexure 'A' Annexure B may be substituted with amended Annexure 'B' Annexure C may be substituted with amended Annexure 'C': Annexure D may be substituted with amended Annexure 'D' The existing Form FC-GPR shall be substituted with the amended Form FC-GPR. In Schedule 2, In Paragraph 1), for sub-paragraph (5), the following shall be substituted, namely :- '(5) A registered FII is permitted to purchase shares/convertible debentures of an Indian company through offer/private placement, subject to the ceiling specified in sub-paragraph (4) of this paragraph and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y engaged in Information Technology sector. (Usha Thorat) Executive Director Annexure A (See paragraph 2) (A) List of Activities for which Automatic Route of RBI for investment from person resident outside India is not available * Domestic Airlines * Petroleum Sector (except for private sector oil refining) * Investing companies in Infrastructure & Services Sector * Defence and Strategic Industries * Atomic Minerals * Print Media * Broadcasting * Postal services * Courier Services * Establishment and Operation of satellite * Development of Integrated Township * Tea Sector (B) List of activities or items for which FDI is prohibited. * Retail Trading * Atomic Energy * Lottery Business * Gambling and Betting * Housing and Real Estate business * Agriculture (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisiculture and Cultivation of vegetables, mushrooms etc. under controlled conditions and services related to agro and allied sectors)and Plantations (Other than Tea plantations) Annexure B (See paragraph 2) Sectoral cap on Investments by persons resident outside India Sector Investment Cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to 49% subject to licencing and security requirements and adherence by the companies (who are investing and the companies in which the investment is being made ) to the license conditions for foreign equity cap and lock-in period for transfer and addition of equity and other license provisions. * ISPs with gateways, radio paging and end-to-end bandwidth, FDI is permitted upto74% with FDI, beyond 49% requiring Government approval. These services would be subject to licensing and security requirements * No equity cap is applicable to manufacturing activities. * FDI upto 100% is allowed for the following activities in the telecom sector: * ISPs not providing gateways (both for satellite and submarine cables) * Infrastructure Providers providing dark fibre (IP Category 1) * Electronic Mail, and * Voice Mail The above would be subject to the following conditions; * FDI upto 100% is allowed subject to the condition that such companies would divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. * The above services would be subject to licencing and security requirements, wherever required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport of goods or services provided at least 75% is for procurement and sale of the same group and not for third party use or onward transfer/ distribution/sales. ii) The following kinds of trading are also permitted , subject to provisions of Exim Policy. * Companies for providing after sales services( that is not trading per se) * Domestic trading of products of JVs is permitted at the wholesale level for such trading companies who wish to market manufactured products on behalf of their Joint ventures in which they have equity participation in India * Trading of hi-tech items/ items requiring specialised after sales service * Trading of items for social sector * Trading of hi-tech, medical and diagnostic items. * Trading of items sourced from the small scale sector under which, based on technology provided and laid down quality specifications, a company can market that item under its brand name * Domestic sourcing of products for exports * Test marketing of such items for which a company has approval for manufacture provided such test marketing facility will be for a period of two years, and investment in setting up manufacturing facilities commences simu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der automatic route * For exploration and mining of gold and silver and minerals other than diamonds and precious stones, metallurgy and processing FDI is allowed upto 100 % under automatic route * Press Note 18 (1998 series) dated 14/12/98 would not be applicable for setting up 100 % owned subsidiaries in so far as the mining sector is concerned, subject to a declaration from the applicant that he has no existing joint venture for the same area and/or the particular mineral. 15. Advertising 100 % Advertising Sector FDI upto 100 % allowed on the automatic route 16. Films 100 % Film Sector (Film production, exhibition and distribution including related services/products) FDI upto 100 % allowed on the automatic route with no entry-level condition 17. Airports 74 % Govt approval required beyond 74 % 18. Mass Rapid Transport Systems 100 % FDI upto 100% is permitted on the automatic route in mass rapid transport system in all metros including associated real estate development 19. Pollution Control & Management 100 % In both manufacture of pollution control equipment and consultancy for integration of pollution control systems is permitted on the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount as percentage to the total issue. * Other Expenses 17. Whether funds are kept abroad. If yes, name and address of the bank. : 18. Details of the listing arrangement : Name of Stock Exchange Date of commencement of trading 19. The date on which ADRs/GDRs issue was launched : 20. Amount raised (in US $) : 21. Amount repatriated (in US $) : Certified that all the conditions laid down by Government of India and Reserve Bank of India have been complied with. Sd/- Sd/- Chartered Accountant Authorised Signatory of the Company Annexure 'D' [Refer to paragraph 4(3) of Schedule I] Quarterly Return (to be submitted to the Reserve Bank of India, Foreign Investment Division, Central Office, Mumbai) 1. Name of Company : 2. Address : 3. GDR/ADR issue launched on : 4. Total No. of GDRs/ADRs issued : 5. Total amount raised : 6. Total interest earned till end of quarter : 7. Issue Expenses and commissions etc. : 8. Amount repatriated : 9. Balance kept abroad Details : (i) Banks Deposits (ii) Treasury Bills (iii) Others (Please specify) 10. No. of GDRs still outstanding : 11. Company's sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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