RBI/2013-14/595
A.P. (DIR Series) Circular No.131
May 19, 2014
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Overseas Direct Investments – Limited Liability Partnership (LLP) as
Indian Party
Attention of the Authorised Dealers (AD) is invited to Foreign Exchange
Management (Transfer or Issue of any Foreign Security) Regulations, 2004
notified by the Reserve Bank vide
Notification No. FEMA.120/RB-2004 dated July
07, 2004 and amended from time to time.
- On a review, it has been decided to notify a Limited Liability
Partnership (LLP), registered under the Limited Liability Partnership Act,
2008 (6 of 2009), as an “Indian Party” under clause (k) of Regulation 2 of
the Notification ibid. Accordingly, an LLP, may henceforth undertake
financial commitment to / on behalf of a JV / WOS abroad in terms of the
extant FEMA provisions under Regulation 6 (and regulation 7, if applicable)
of the Notification ibid.
- Necessary amendment to the Notification ibid has been issued vide
Notification No. FEMA.299/2014-RB dated March 24, 2014 (copy enclosed),
which is effective from the date of publication in the Gazette i.e. May 07,
2014.
- The AD banks shall report the financial commitment/s undertaken by an LLP
in Form ODI Part I and II and also other reporting (APR, disinvestments,
etc.) as per the extant reporting requirements.
- 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 (FEMA), 1999 (42 of
1999) and are without prejudice to permissions/approvals, if any, required
under any other law.
Yours faithfully,
(C D Srinivasan)
Chief General Manager