RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No.120
May 08, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign Direct Investment (FDI) in India - Issue of equity shares under the
FDI scheme allowed under the Government route
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited
to the
A.P. (DIR Series) Circular No. 74 dated June 30, 2011, and
A.P. (DIR
Series) Circular No. 55 dated December 09, 2011, on issue of equity shares/
preference shares under the Government route by conversion of import of capital
goods / machineries / equipments (including second-hand machineries) and
pre-operative / pre-incorporation expenses (including payments of rent, etc.),
subject to the terms and conditions stated therein.
- With a view to incentivising use of machinery embodying the latest
state-of-the-art technology, compliant with international standards, in terms of
being green, clean and energy efficient, it has now been decided to exclude
conversion of imported second-hand machinery from the purview of this provision.
- All the other instructions contained in the above referred A.P. (DIR Series)
Circulars shall remain unchanged.
- AD Category - I banks may bring the contents of the circular to the notice of
their customers/constituents concerned.
- Necessary amendments to Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident Outside India) Regulations, 2000 (Notification No.
FEMA 20/2000-RB dated May 3, 2000) are being notified separately.
- 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,
(Rudra Narayan Kar) Chief General Manager
RBI/2011-12/541