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Indian Direct Investment in Joint Ventures (JV)/ Wholly Owned
Subsidiaries (WOS) Outside India
A.P.
(DIR Series) Circular No. 51 dated 24th June 2002
Attention
of authorised dealers is invited to Foreign Exchange Management (Transfer or
Issue of any Foreign Security) Regulations, 2000 notified by the Reserve Bank
vide Notification No.FEMA.19/ RB-2000 dated May 3, 2000, as amended from time to
time.
2.
In terms of A.P. (DIR Series) Circular No.3 dated June 22, 2000 as
amended by A.P. (DIR Series) Circular No.13 dated September 14, 2000, in case of
investments made under the automatic route for overseas direct investment,
authorised dealers are required to forward to the Reserve Bank, form ODA
alongwith the prescribed documents and a report on remittance in form ODR.
Remittances made under an approval of the Reserve Bank are only required to be
reported in form ODR.
3.
With a view to further streamlining the procedure for reporting overseas
direct investments in JV/WOS, it has been decided to dispense with the
requirement of forwarding of form ODA alongwith the prescribed documents to
Reserve Bank for investments made under the automatic route by Indian parties.
4.
The report on remittances required to be submitted by authorised dealers
has also been revised. All remittances/guarantees issued/ capitalisation of
exports etc., irrespective of whether under the automatic route or under Reserve
Bank approval, are henceforth required to be reported in the revised form ODR
(format enclosed), to the Chief General Manager, Reserve Bank of India, Exchange
Control Department, Overseas Investment Division, Amar Building, 3rd
Floor, Mumbai-400001. There will be no change in the procedures relating to the
receipt/scrutiny of the form ODA submitted by the Indian parties to the
authorised dealer. Accordingly A.P.
(DIR Series) Circular No. 3, ibid, stands modified to that extent.
5.
Necessary amendments to the Foreign Exchange Management (Transfer or
Issue of any Foreign Security) Regulations 2000 are being notified separately.
6.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
7.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
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ODR
Report
on Remittances for Overseas Direct Investment by Authorised Dealers
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All
amounts in Foreign Currency (FCY) and Indian Rupees (INR) should be in
thousand only.
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For
use by RBI only
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Date
of Receipt: ____________________
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Inward
No. _________________________
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Identification
No.
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Name
and address of the authorised dealers
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________________________________________________________________
________________________________________________________________
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Telephone
No.
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________________________________
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Fax
No.
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________________________________
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Email
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________________________________
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A.D.
Code
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________________________________
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If
the investment is in the existing JV/WOS, please indication/ Approval No.
already allotted: No.
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I.
General
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Natural
and category of the investment [Please tick (�)
the appropriate box]:
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A.
Fresh Proposal
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B.
Supplementary Proposal
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(i)
Participation in JV abroad
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(i)
Enhancement of equity in existing JV/ WOS abroad
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(ii)
Contribution in WOS
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(ii)
Grant/ Enhancement of loan in existing JV/ WOS
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(iii)
Full/ partial* takeover of an existing foreign concern
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(iii)
Extension enhancement of guarantee
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(iv)
Acquisition of a company overseas through bidding or tender procedure
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(iv)
Others (Please specify)
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(*
Strike out whichever is not applicable)
II.
Particulars of Indian Party
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(a)
Name and Address of the Indian Party
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______________________________________________________
______________________________________________________
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Telephone
No.
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________________________________
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Fax
No.
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________________________________
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Email
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________________________________
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(b)
Status*
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(c)
Name of the industrial House/ Group to which the Indian party belongs
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(d)
(i) Existing line of activity of the Indian party
(Please
tick the appropriate box)
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(ii)
Brief particulars of the products manufactured/ goods traded/ services
rendered
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Manufacturing
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Trading
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Financial
Services
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Non-Financial
Services
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Others
(please specify)
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(e)
Years of experience in the existing line of activity:
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*
(a) Public Ltd. Company (1), (b) Private Ltd. Company (2), (c) Public Sector
Undertaking (3), (d) others (4) [Please specify]
III.
Particulars of the foreign partners concern (in case of JV)
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(a)
Details of the foreign Partner/ concern
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Name
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_________________________________________________________
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Address
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_________________________________________________________
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Telephone
No.
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________________________________
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Fax
No.
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________________________________
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Email
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________________________________
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(b)
Years of experience in the proposal field of collaboration
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IV.
Particulars of JV/WOS
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(i)
Name and Address of the JV/ WOS
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______________________________________________________
______________________________________________________
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Telephone
No.
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________________________________
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Fax
No.
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________________________________
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Email
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________________________________
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(ii)
Country of location
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(iii)
Line of activity of the JV/ WOS
(Please
tick the appropriate box)
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(ii)
Brief particulars of the products manufactured/ goods traded/ services
rendered
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(a)
Manufacturing
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(b)
Trading
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(c)
Financial Services
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(d)
Non-Financial Services
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(e)
Others (please specify)
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(v)
Percentage holding by Indian Party (in case of JV):
________________________________
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Percentage
holding by foreign partner (in case of JV):
____________________________________
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(vi)
Time-frame for implementation of the project:
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___________________________________
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(vii)
Accounting year followed in the host country
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___________________________________
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V.
Profitability projections of the overseas JV/ WOS
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(Amount
in FCY) **
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Year
of Operation
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1
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2
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3
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4
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5
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Total
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(a)
Gross Sales/ turnover
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(b)
Net Profit (Loss)
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(c)
Dividend
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(d)
Net worth
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VI.
Projected Repatriable Entitlements
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(Amount
in FCY) **
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Year
of Operation
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1
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2
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3
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4
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Total
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(a)
Dividend
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(b)
Others (Please specify)
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VII.
Projected Non-Equity Exports
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(Amount
in INR)
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Year
of Operation
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1
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2
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3
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Total
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FOB
Value
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VIII.
Details of Remittances Effected
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Investments
under Automatic Route/ approval issued by Reserve Bank
(Strike
out whichever is not applicable)
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Currency
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Amount
of the proposed investment:
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Equity
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Loan
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Guarantee
(Invoked)
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Date
of Remittance
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Details
of actual remittance effected:
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(a)
From EEFC A/c.
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Equity
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Loan
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Guarantee
(Invoked)
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Date
of Remittance
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(b)
By Market Purchases
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Equity
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Loan
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Guarantee
(Invoked)
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Date
of Remittance
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(c)
From the ADR/ GDR funds parked in India/ outside India
(Strike
out whichever is not applicable)
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Equity
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Loan
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Guarantee
(Invoked)
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Date
of Remittance
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(d)
Capitalisation of Exports/ other dues @
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Date
of capitalization:
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Amount:
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(e)
Guarantee issued:
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Amount:
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@
Please specify the other dues being capitalised viz., royalty, technical
know-how fee, consultancy fees, etc.
**
Please indicate name of the foreign currency (FCY) as per SWIFT code.
We
hereby confirm that the remittance* has been allowed under the automatic Route
Base on the certification given by the statutory auditors (in form ODA)
confirming compliance with the prescribed terms and conditions by the Indian
Party/* is in accordance with the terms and conditions of the approval letter
issued by the Reserve Bank. /* in respect of the invoked guarantee 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.
*
strike out whichever is not applicable
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Place
__________________
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______________________________
Signature
of the authorised Official of the Bank
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Dated
__________________
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Name:
_____________________________________
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Designation:
________________________________
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Tel.
No. ____________________________________
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Fax
No. ____________________________________
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Note:
This form should be forwarded to the Overseas Investment Division, Central
Office, Exchange Control Department, Reserve Bank of India, Amar Building
(Third Floor), Fort, Mumbai 400001 immediately after making the
remittance/ capitalisation of exports, other dues, etc.
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