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TMI BlogOverseas Direct Investment – Amendments to FormsX X X X Extracts X X X X X X X X Extracts X X X X ..... irect investment in the recent past, following amendments have been made to the Form ODA and detailed instructions are given for filling forms ODA, ODI, ODB & ODG : a) Form ODA Amendment to Declaration Annexure I b) Form ODA Amendment to Certificate by the Statutory Auditor of the Investor Company Annexure II c) Instructions for filling up the forms ODA, ODI, ODB and ODG Annexures III, IV, V, VI 2. Necessary amendments to the Foreign Exchange Management (Transfer or issue of any foreign security) Regulations 2000 are being notified separately. 3. Authorised Dealers may bring the contents of this circular to the notice of their concerned constituents. 4. The directions contained in this circular have been issued under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n securities) Regulations, 2000) have been complied with by the Indian party in respect of the investment under report. In particular, it is further certified that- (i) the investment is not in real estate oriented or banking business, and (ii)* the amount of foreign exchange proposed to be purchased for remittance towards the investment together with remittances already made and exports and other dues capitalised for investment abroad during the current financial year under the Automatic Route is/will be within 100 % of the net worth of the Indian party as on the date of last audited balance sheet, (iii)**that the Indian party has (a) a minimum networth of Rs.15 crores; (b)has made net profits during preceding three years, (c) has fulfille ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is more than one Indian party making investment in the same JV/WOS overseas, form ODA should be obtained by all the Indian parties jointly along with a certificate(s) from other ADs, if remittances are effected by the latter. 4. In case where the Indian party is successful in the bid for overseas acquisitions for which it has already made remittance towards Earnest Money Deposit or issued bid bond guarantee, under a bidding or tender procedure, while effecting the final remittance towards such acquisition, a report in the form ODA may be obtained. ANNEXURE-IV Instructions for filling up the Form ODI (This part should be detached and retained by the applicant) (1) Application complete in all respects should be submitted in two se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Directors' report of the foreign concern ; and iii. A copy of the share valuation certificate from iv. where the investment is more than US $ 5 (five) million, by a Category I Merchant Banker registered with SEBI or an Investment Banker/Merchant Banker registered with the appropriate regulatory authority in the host country; and v. in all other cases, by a Chartered Accountant or a Certified Public Accountant f. A copy of the resolution of the Board of Directors of the Indian party/(ies) approving the proposed investment. g. Where investment is in the financial services sector, a certificate from a Chartered Accountant/Auditor's firm to the effect that the Indian Party : i. has earned a net profit during the preceding three yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utting through the transaction. ANNEXURE-V Instructions for filling up the form ODB 1. The form complete in all respects should be submitted in triplicate to the Chief General Manager, Reserve Bank of India, Exchange Control Department, Central Office, Overseas Investment Division, Amar Building, Mumbai-400 001. 2. For foreign currency SWIFT codes may be used. 3. If any specific acquisition deal has been negotiated, the details thereof including the name of the overseas company being acquired, its performance for the last three years, share exchange ratio, acquisition price, valuation report 4. A brief write-up incorporating, inter alia, the tentative business plan of overseas unit/s being acquired, country of location of such for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulations in Part I, including under (i) of this clause, in the same financial year, ii. the issued amount of the ADRs/GDRs exchanged for acquiring shares of the overseas (acquired) company is within the limit specified in the Foreign Exchange Management (Transfer or issue of any foreign security) Regulations,2000 iii. the ADRs and/or GDRs issued for the purpose of acquisitions are backed by underlying fresh equity shares of the Indian party; iv. after the new ADR and/or GDR issue, the total holding in the Indian party by persons resident outside India in the expanded capital base, does not exceed the sectoral cap prescribed under the relevant regulations for such investments in the activities in which the Indian party is engaged; and v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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