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TMI BlogForeign Exchange Management (Transfer or issue of Any Foreign Security) (Amendment) Regulations, 2008X X X X Extracts X X X X X X X X Extracts X X X X ..... gulation 6: In the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (Notification No. FEMA 120/RB-2004 dated July 7, 2004 (hereinafter referred to as the 'principal regulations' ) in Regulation 6, (i) in sub- regulation (2), for clause (iv) the following shall be substituted, namely: "(iv) The Indian Party has submitted its Annual Performance Report in respect of all its overseas investments in the format given in Part III of the Form ODI." (ii) In sub- regulation (2 ), for clause (vi), the following shall be substituted, namely:- "(vi) the Indian Party submits Part I of the Form ODI, duly completed, to the designated branch ,of an authorized dealer." (iii) in sub-regulation (5), in the proviso, for clause (b), the following shall be substituted, namely: "(b) The Indian Party files with the designated authorised dealer in Parts I and II of the Form ODI full details of the investment proposed." 3. Amendment of Regulation 9: In the principal Regulations, in Regulation 9, in sub-regulation (2), the following shall be substituted, namely:- "(2) Application for direct investment in Joint Venture/Wholly Owned Subsidiary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-in-Charge Foot Note :— (i) The Foreign Exchange Management (Transferor Issue of Any Foreign Security) Regulations, 2004 were published in the Official Gazette vide: G.S.R.No.757 (E) dated November 19, 2004 and subsequently amended vide: G.S.R. No.220 (E) dated April 7, 2005 G.S.R. No.337 (E) dated May 27, 2005 G.S.R. No.552 (E) dated August 31, 2005 G.S.R.No. 535(E) dated September 6, 2006 G.S.R.No. 13(E) dated January 5, 2008 G.S.R.No. 209(E) dated March 25, 2008 G.S.R.No.____________ dated_____________ (ii) It is clarified that no person will be adversely affected as a result of retrospective effect being given to these Regulations. **************************************** ANNEX FORM OVERSEAS DIRECT INVESTMENT (ODI) FORM ODI PART I For office use only Date of Receipt _____________ Inward No._________________ Section A: Details of Indian Party (I) Investment under (i) Automatic Route _______________ (ii) Approval Route____________________ (In case there is more than one Indian party, information may be given on separate sheets for each of-the parties) (II) Name of Indian Party _____________________________________________ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f stake in an already existing JV/WOS overseas promoted by an Indian party. Section B Details of Investment in New Project For Reserve Bank use. only Unique Identification Number (I) Purpose of investment (Please tick appropriate category) (a) Participation in JV_______________ (b) Contribution in WOS _______________________ (c) Full acquisition of a foreign concern___________________ (d) Partial acquisition of a foreign concern _________________ (e) Investment in unincorporated entity____________________ (f) Others _________________________________________ (II) Particulars of JV/WOS____________________________ (a) Name of JV/WOS________________________________ (b) Address of JV/WOS ______________________________ (C) Name of the country ______________________________ (d) e-mail___________________________________________ (e) Accounting year followed by JV/WOS __________________ (III) Activity code of JV/WOS ___________________________ (IV) Whether JV/WOS is SPV (Y/N)? ____________________# # If Y, Please furnish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... _______________ V. Whether JV/WOS is SPV (Y/N)_____________________ (a) If Y, purpose of SPV: _____________________________ i) Full value of the overseas acquisition ____________________ ii) Direct/Indirect infusion by SPV________________________ ii) Funds raised overseas with guarantee/ counter guarantee from Indian party_______________________ iii) Funds raised overseas without guarantee/ counter guarantee from Indian Party_________________________ iv) Funds contributed in the form of equity/ preference equity/shareholder's loans by foreign investors ______________________________________ v) Securitisation_________________________________________ vi) Any other mode (please specify)____________________________ Total ________________________________________________ VI. Guarantees/Other Non fund based Commitments____________________ Note :- Financial Commitment as defined in FEMA 120/RB-2004 dated July 7, 2004 Sec 2(f)-Financial Commitment means amount of Direct Investment by way of contribution to equity, loan and 100 per cent of the amount of guarantee issued by Indian Party to or on behalf of its overseas Joint Venture company or Wholly Owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign exchange proposed to be purchased for remittance towards the investment together with remittances for all overseas investments already made and exports and other dues capitalized / swap of shares / investment from ECB / FCCB balances for investment abroad under the Automatic Route is within the limit stipulated by the Reserve Bank from time to time. This has been verified with reference to the net worth of the Indian party as on the date of Last audited balance sheet, i.e. (date) (iii) has complied with the valuation norms prescribed for the investment (iv) has complied with the ECB guidelines # (v) that the Indian party (a) has made net profits during the preceding three years, (b) has fulfilled the prudential norms of capital adequacy as prescribed by the regulatory authority concerned; (c) has been registered with the appropriate regulatory authority in India and (d) has obtained approval for the investment in financial services sector activities from the regulatory authorities concerned in India and abroad * Note: - *Applicable only in cases where the investment is in the financial services sector (e.g. insurance, mutual fund, asset management. etc.). # Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the approval letter issued by the Reserve Bank; and iii) in respect of the invoked guarantee remittance has been made after satisfying that the claim is in conformity with the terms and conditions of the guarantee Issued to/on behalf of the JV/WOS abroad. Place:________________ Date:________________ (Signature of authorised official of the bank) Name:_____________________ Designation_________________ Tel. No.___________________ FAX No.__________________ Stamp/Seal_____________________ PART III ANNUAL PERFORMANCE REPORT (APR) (To be submitted certified by Chartered Accountant through the designated AD Category— I bank every year within 3 months of the closing of annual accounts of the JV/WOS as long as the JV/WOS is existence) I. Date of APR: _________________ II. Unique Identification Number (Please indicate 13 digit Unique Identification number issued by RBI) III. Changes in capital structure since last reporting Amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Guarantees Invoked Changes in the capital Structure since the last APR Equity Loan Guarantees Issued Amount Repatriated on disinvestments Equity Loan It is certified that (Strike out whichever is not applicable) I. (a) the sale is effected through a stock exchange where the shares of the overseas Joint Venture (JV) or Wholly Owned Subsidiary (WOS)are listed, (b) if the shares are not listed on the stock exchange, and the shares are disinvested by a private arrangement, the share price is not less than the value certified by a Chartered Accountant /Certified Public Accountant as the fair value of the shares based on the latest audited financial statements of the Joint Venture or Wholly Owned Subsidiary; (c) The Indian party does not have any outstanding dues by way of dividend, technical know-how fees, royalty, consultancy, commission or other entitlements, and/or export proceeds from the Joint Venture or Wholly Owned Subsidiary, (d) The overseas concern has been in operation for a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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