TMI BlogOverseas Investment - LiberalisationX X X X Extracts X X X X X X X X Extracts X X X X ..... Ss) / Joint Ventures (JVs), under the Automatic Route and issue of personal, collateral and third party guarantees requires prior approval of Reserve Bank and is considered by RBI, on a case by case basis. With a view to simplify the procedure, it has now been decided to enlarge the scope of guarantees covered under the Automatic Route. Accordingly, Indian entities may offer any forms of guarantee - corporate or personal / primary or collateral / guarantee by the promoter company / guarantee by group company, sister concern or associate company in India, provided that : a) All 'financial commitments' including all forms of guarantees are within the overall prescribed ceiling for overseas investment of the Indian party i.e. currently wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty is required to submit details of the disinvestment through its designated Authorised Dealer bank within 30 days from the date of disinvestment. 4. Overseas Investments - Proprietorship concerns In terms of Notification No.FEMA120/RB-2004 dated 7th July 2004, as amended from time to time, only a company incorporated in India, or a body created under an Act of Parliament or a partnership firm registered under Indian Partnership Act, 1932, or any other entity as may be notified by the Reserve Bank is eligible to invest in a JV/WOS abroad. With a view to enabling recognised star exporters with a proven track record and a consistently high export performance to reap the benefits of globalization and liberalisation, it has been dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed proprietorship or unregistered partnership exporter firms i) The Partnership / Proprietorship firm is a DGFT recognised Star Export House (export exceeding Rs.15 crore) per annum. ii) The Authorised Dealer bank is satisfied that the exporter is KYC (Know Your Customer) compliant, is engaged in the proposed business and has turnover as indicated. iii) Exporter has proven track record i.e. export outstanding does not exceed 10 per cent of the average export realisation of preceding three years. iv) The exporter has not come under adverse notice of any Government agency like Enforcement Directorate, CBI and does not appear in the exporters' caution list of the Reserve Bank or in the list of defaulters to the banking system in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
