RBI/2011-12/11
Master Circular No.11/2011-12
July 1, 2011
To,
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Master Circular on Direct Investment by Residents in Joint Venture (JV) /
Wholly Owned Subsidiary (WOS) Abroad
Direct investments by residents in Joint Venture (JV) and Wholly Owned
Subsidiary (WOS) abroad are being allowed, in terms of clause (a) of sub-section
(3) of section 6 of the Foreign Exchange Management Act 1999, (42 of 1999) read
with
FEMA Notification 120/RB-2004 dated July 7, 2004, (GSR 757 (E) dated
November 19, 2004), viz. Foreign Exchange Management (Transfer or Issue of Any
Foreign Security) Regulations, 2004, as amended from time to time.
- This Master Circular consolidates the existing instructions on the subject of
“Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary
(WOS) Abroad'; at one place. The list of underlying circulars/notifications is
furnished in the Appendix.
- This Master Circular is issued with a sunset clause of one year. This
circular will stand withdrawn on July 01, 2012 and be replaced by an updated
Master Circular on the subject.
Yours faithfully
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager