Reserve Bank Of India
A. P. (DIR Series) Circular No.74
January 10, 2013
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 Para 3 of A.P. (DIR Series) Circular No. 74 dated June 30, 2011 read with
A.P. (DIR Series) Circular No. 55 dated December 9, 2011, allowing thereby issue
of equity shares/ preference shares under the Government route by conversion of
import of capital goods, etc., subject to terms and conditions stated therein.
- On review of the policy, it has now been decided to amend certain conditions
in the aforesaid para. The amended conditions are given in the Annex.
- All the other conditions contained in the
A.P. (DIR Series) Circulars No. 74
dated June 30, 2011 and No. 55 dated December 9, 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) have been notified vide Notification No.
FEMA.229/2012-RB dated April 23, 2012 and Notification No. FEMA.242/2012-RBdated
October 19, 2012
- 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/2012-13/375
Annex
[A. P. (DIR Series) Circular No.
dated January, 2013]
| c.f. A.P.(DIR Series) Circular No. 74 dated June 30, 2011
|
Earlier Condition |
Revised condition |
| Para 3(I) |
Import of capital goods/ machineries/equipments (including second-hand
machineries), |
Import of capital goods/ machineries/equipments (excluding second-hand
machineries), |
| Para 3(I)(b) |
There is an independent valuation of the capital goods / machineries /
equipments (including second-hand machineries) by a third party entity,
preferably by an independent valuer from the country of import along with
production of copies of documents /certificates issued by the customs
authorities towards assessment of the fair-value of such imports;
|
There is an independent valuation of the capital goods / machineries /
equipments (excluding second-hand machineries) by a third party entity,
preferably by an independent valuer from the country of import along with
production of copies of documents /certificates issued by the customs
authorities towards assessment of the fair-value of such imports; |