RBI/2011-12/421
A.P. (DIR Series) Circular No.88
March 1, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Clarification - Establishment of Branch Offices (BO) /
Liaison Offices (LO) in India by Foreign Entities – Delegation of Powers
Attention of Authorised Dealer Category – I (AD Category – I) banks is
invited to
A.P. (DIR Series) Circular No.24 dated December 30, 2009 in
terms of which powers have been delegated to the AD Category-I bank regarding
submission of Annual Activity Certificate by BO / LOs,
extension of the validity period of LOs and closure of BO / LOs of foreign
entities in India.
2. In the A.P. (DIR Series) Circular mentioned above, powers as regards the
transfer of assets of LO / BO to others have not been delegated. It is,
therefore, clarified that transfer of assets of Liaison / Branch Office to
subsidiaries or other LO / BO or any other entity is permitted only with
the specific approval of the Central Office of the Foreign Exchange Department,
Reserve Bank of India.
3. All the other instructions of A.P. (DIR Series) Circular No.24 dated
December 30, 2009 shall remain unchanged.
4. AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
5. 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 is
without prejudice to permissions / approvals, if any, required under any other
law.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge