TMI BlogOpening, holding and maintaining a Foreign Currency Account outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... he Act or the rules or regulations made or the directions issued thereunder. (2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located. (B) Account by a company/ firm in the name of its office/ branch/ representative outside India A firm or a company or a body corporate registered or incorporated in India (hereinafter referred to as the Indian entity ) may open, hold and maintain in the name o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere no representative is posted for six months, and the balance held in the account shall be repatriated to India; Provided further that the restriction contained in clause (b) of the first proviso shall not apply in a case where 1) the remittances to the account maintained under this sub-Regulation are made out of funds held in EEFC account of the Indian entity, or 2) the overseas branch/ office is set up or representative posted by a 100% Export Oriented Unit (EOU) or a unit in Export Processing Zone (EPZ) or in a Hardware Technology Park or in a Software Technology Park, within two years of establishment of the Unit. Explanation: For the purpose of this sub-Regulation, 1) Purchase of acquisition of office equipment an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended from time to time (b) The host country regulations stipulate that the investment into the country is required to be routed through a designated account. (c) The account shall be opened, held and maintained as per the regulation of the host country. (d) The remittances sent to the account by the Indian party should be utilized only for making overseas direct investment into the Joint Venture/ Wholly Owned Subsidiary (JV/ WOS) abroad. (e) Any amount received in the account by way of dividend and/ or other entitlements from the subsidiary shall be repatriated to India within 30 days from the date of credit. (f) The Indian party should submit the details of debits and credits in the account on yearly basis to the designated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India.] 1 [(F)] Other Cases (1) Subject to compliance with the conditions in regard to raising of External Commercial Borrowings (ECB) or raising of resources through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs), the funds so raised may, pending their utilisation or repatriation to India, be held in deposits in foreign currency accounts with a bank outside India. (2) A shipping or airline company incorporated in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of undertaking transactions in the ordinary course of its business. 2 [(3) Insurance/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be made in accordance with the Act, Rules and Regulations made thereunder. Provided further that on his return to India, after completion of studies, such an account will deemed to have been opened under the Liberalised Remittance Scheme. (7) A person resident in India who is on a visit to a foreign country may open, hold and maintain a Foreign Currency Account with a bank outside India during his stay outside India, provided that on his return to India, the balance in the account is repatriated to India. (8) (i) A citizen of a foreign State, resident in India, being an employee of a foreign company or a citizen of India, employed by a foreign company outside India and in either case on deputation to the office/ branch/ subsidi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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