RBI/2011-12/295
A. P. (DIR Series) Circular No.55
December 09, 2011
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, allowing thereby
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 terms and conditions stated
therein.
- It has now been decided to amend certain conditions in the aforesaid A.P.
(DIR Series) Circular. The amended conditions are given in the
Annex.
- All the other instructions contained in the A.P. (DIR Series) Circular No. 74
dated June 30, 2011 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,
(Rashmi Fauzdar)
Chief General Manager
Annex
[A. P. (DIR Series) Circular No. 55
dated December 09, 2011]
c.f. A.P.(DIR Series)
Circular No. 74 dated
June 30, 2011 |
Earlier condition
|
Revised condition |
| Para 3 (I) (d)
|
All such conversions of import payables for capital goods into FDI should be
completed within 180 days from the date of shipment of goods. |
Applications complete in all respects, for conversions of import payables for
capital goods into FDI being made within 180 days from the date of shipment of
goods. |
| Para 3 (II) (d)
|
The capitalization should be completed within the stipulated period of 180 days
permitted for retention of advance against equity under the extant FDI policy.
|
The applications, complete in all respects, for capitalisation being made within
the period of 180 days from the date of incorporation of the company. |