RBI/2011-12/392
A.P. (DIR Series) Circular No. 76
February 09, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Clarification - Establishment of Project Offices in India by Foreign Entities
– General Permission
Attention of the Authorised Dealer Category - I (AD Category - I) banks is
invited to Regulation 4 of
Notification No.FEMA 22 /2000-RB dated May 3, 2000,
viz., Foreign Exchange Management (Establishment in India of Branch or Office or
other Place of Business) Regulations, 2000, as amended from time to time, in
terms of which, no person, being a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China, shall establish in India, a branch office or a
liaison office or a project office or any other place of business by whatever
name called, without the prior permission of the Reserve Bank. Attention of the
AD Category -I banks is also invited to the A.P. (DIR Series) Circular No. 37
dated November 15, 2003 which provides the guidelines regarding general
permission to a foreign entity for setting up a Project office in India, subject
to certain conditions.
- It is clarified that the general permission accorded in terms of the
November 15, 2003 guidelines is subject to the adherence to the provisions
of Regulation 4 of Notification No.FEMA 22/2000-RB dated 3rd May 2000, ibid,
alongwith their specified conditions.
- AD Category - I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- 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,
(Meena Hemchandra)
Chief General Manager-in-Charge