FEMA - bangaloreicai.org formalities increased from USD 5000 to USD ... regulations framed under FEMA Regulators ... Foreign Investor Unincorporated entities Incorporated

FEMA

An Overview and Update

Sudhakar. G / Shruti. KP

09 June 2012

ICAI Bangalore Branch

The Road to FEMA…

That’s the 70s show…

• Foreign Exchange Regulation Act, 1973 (FERA) enacted in the 70s when environment

in was rigid and severely restricted

• Slow economic growth

• Foreign exchange was scarce

• India‟s global trade was extremely limited

27 years later…globally

• Change in global economic and political scene

• Emerging trends of globalisation

2

The Road to FEMA…

27 years later….India

• Liberalization of Indian economy from „License Raj‟

• „New Industrial Policy‟ announced by the Indian government

• Necessity of improving the climate of foreign investment in India recognized

• Considered necessary to empower Reserve Bank of India (RBI) to impose penalties on

authorized dealers (AD) for their lapses

• Government set about revamping FERA through notifications issued through the RBI

• However, this piecemeal relaxation of FERA did not calm foreign investor‟s nerves

• Advent of several significant changes in the economy

‒ Growth in foreign trade

‒ Increase in foreign exchange reserves

‒ Current account convertibility

‒ Access to external commercial borrowings

‒ Rationalization of tariffs

‒ Participation of foreign institutional investors in Indian stock exchanges

3

The Road to FEMA…

27 years later….India

• Decision to repeal FERA and RBI set out to draft new legislation

• FERA (Amendment) Bill was to be introduced – swept away in the Ayodhya fiasco

• However, Ordinance promulgated amending FERA

• Subsequently, FERA (Amendment) Act, 1998 enacted

• Additionally, India as member of International Monetary Fund (IMF) was obliged to

realign its laws by introducing reforms in the exchange control regulations as well

4

The Road to FEMA…

5

Legislation Authority

FEMA Central Government

FEMA Rules Central Government

FEMA Regulations Central Government/RBI

FEMA Notifications Central Government/RBI

FEMA AP(DIR) Circulars RBI

Master Circulars RBI – Consolidated Circulars

FDI Policy DIPP – MoC

Press Notes DIPP – MoC

Foreign Currency Transactions

6


• Exchange control regulations significantly liberalized to facilitate payments by residents

to non-residents

• Authorized dealers significantly empowered

• Drawal of foreign currency:

Items listed in Schedule I – Not permitted

Items listed in Schedule II – Permitted with the approval of the specified ministries

Items listed in Schedule III – Permitted under the automatic route within the specified

limits

7


8

Capital Account Remittances

Generally prohibited unless specifically

permitted, such as:

• Foreign currency loans

• Preference shares/convertible

debentures

Current Account Remittances

Generally permitted unless specifically

restricted, such as:

• Pre-Incorporation expense

reimbursement – higher of 5% of

foreign investment & USD 100,000

• Consultancy service fee allowed only

up to USD 1 million per project

Exchange Control - substantially diluted, limited restrictions remain


9

Particulars Remarks

Business Travel USD 25,000

Medical Treatment USD 100,000

Cultural Tours Based on approval from HRD Ministry

Private Visits USD 10,000 except travel to Nepal and Bhutan

Conferences USD 25,000

Gift/Donation USD 5,000

Overseas Employment USD 10,000

Higher Studies USD 100,000

Commission to overseas agent

(Real Estate)

USD 25,000 or 5% of inward remittance


• Unspent foreign exchange – remit it back within 180 days

• Advance remittance towards imports – USD 500,000

• Issue of Guarantee – USD 500,000

• Liberalized remittance Scheme – USD 200,000 on permissible current account and

capital account transactions

Per financial year without any approval

Resident individuals can acquire hold shares, immovable properties, ESOP, repayment

of Loan, investment in VC, mutual funds outside India, etc.

Documentation

10


• Remittance of current income like interest, dividend, pensions, rent etc can be freely

remitted by way of a debit to the NRO account by a NRI

NRI‟s without NRO account can remit freely based on a CA certificate

• Remittance of assets by a foreign national of a non-Indian origin – USD 1,000,000

• NRI/PIO can remit upto USD 1,000,000 held in NRO/sale proceeds of assets

• NRI/PIO can remit sale proceeds of immovable property purchased from rupee funds

without any lock in period

• Remittance of salary – after payment of taxes due

• Remittances of sale proceeds of residential property by NRI/PIO – USD 1,000,000

11


• Currently, AD Banks permitted to release remittances up to USD 5000 or its equivalent

for all permissible transactions on the basis of a simple letter from applicant containing

specified Information

• Henceforth, foreign exchange remittances for miscellaneous purposes without

documentation formalities increased from USD 5000 to USD 25,000

• RBI has advised AD Banks to accept a simple letter containing the specified details if

the following conditions are satisfied:

‒ Foreign exchange is being purchased for a current account transaction (not included

in the Schedules I and II the Foreign Exchange Management (Current Account

Transactions) Rules 1999); and

‒ Amount for remittance does not exceed USD 25000 or its equivalent and the

payment is made by a cheque drawn on the applicant‟s bank account or by a

Demand Draft

12

So what‟s

new…

FDI Policy Overview

13

Foreign Direct Investment Policy

14

Foreign

investment in

India

Foreign Direct

Investment

(FDI)

Foreign Venture

Capital Investor

(FVCI)

FII Automatic

route

Approval

route

Portfolio

Investment

Scheme

Consolidated FDI Policy - effective 10 April 2012 – to be reviewed yearly

Other

investments

Investments on

non-repatriable

basis

NRI, PIO

Person resident

outside India

FII NRI, PIO NRI, PIO

FDI and the legal framework

• Regulated under Foreign Exchange Management Act, 1999 ('FEMA') and the various

regulations framed under FEMA

Regulators

• RBI

• FIPB, Department of Economic Affairs, Ministry of Finance

• DIPP, Ministry of Commerce and Industry

Sector specific

• 100% FDI allowed in almost all sectors. FDI in certain sectors is subject to certain conditions and limitations

Entry Routes

• Automatic route – no government approval required

• Approval route – approval of the FIPB required in specified sectors

Investment s subject to ‘existing venture/tie up condition’

Investment Routes

• By subscription of fresh shares

• By acquisition of existing shares through transfer

15

Foreign Direct Investment Policy

16

2 Routes

• No prior approval

• Intimate RBI within 30

days of inward remittance

• Issue shares within 180

days of receipt and

requisite RBI filings

• Automatic route covers:

Activities / Sectors not

prohibited or not restricted

in any manner

Activities / Sectors within

sectorial caps not requiring

approval

• FDI thru normal banking

channel

Automatic Route

• Prior government approval

is required from FIPB

• Approval required for FDI in

the following cases: Proposals for foreign equity

beyond 24% in undertaking

which manufactures items

reserved for MSE

Proposals outside sectoral

caps

Swap of shares

Indian Company engaged

only in investing in the

capital of other Indian

company/ies

FDI in LLP

Approval Route

Prohibited Sectors

Foreign Direct Investment Policy an Overview

*For FDI beyond 51% in Single brand retail approval of FIPB required, sourcing of at least 30% of the value of

products sold will have to be mandatorily done from Indian 'Small Industries/ Village and Cottage Industries,

Artisans and Craftsmen'.

17

Some Sectors FDI Cap

• Civil Aviation 49%

• Defence sector 26%

• Insurance 26%

• News Media 26%

• Private Banking 74%

• Single Brand Retail* 100%

• Telecom 74%

• Pharma 100%

(Brownfield)

Restricted

• Agriculture (some

exceptions)

• Betting, Gambling &

Lottery

• Chit funds & Nidhi Co.

• Real estate (except

construction

development)

• Retail Trading (except

single brand retail)

• Tobacco products

• Trading in Transferable

Development Rights

Prohibited Permitted

• Railways (other than

Mass Rapid Transport

Systems)

• Atomic Energy

Govt. sector only

100% FDI

permitted under

automatic route

in most Sectors

Who can invest?

• A non-resident entity (except citizen/entity incorporated in Pakistan)

• Citizen/entity incorporated in Bangladesh – only approval route

• NRIs resident in Nepal/Bhutan and citizens of Nepal / Bhutan – subject to certain conditions

• Erstwhile OCBs (with prior approval through both routes)

• FIIs (certain compliances mandatory)

• FVCIs

• Only FII/NRIs permitted to invest in Indian companies in Indian stock exchanges directly

18

FVCIs

• Registration with SEBI as FVCI under the SEBI (FVCI) Regulations, 2000

• Registration not mandatory but brings certain advantages

• Example:

• No pricing guidelines applicable during entry and exit

• Lock in benefits

• FVCIs may invest in unlisted domestic companies in sectors which are not in the negative list

19

Permitted entities for FDI

• Indian company

• Partnership Firm/ Proprietary Concern

• Venture Capital Fund

• Trusts

• Limited Liability Partnerships

• FDI in resident entities other than those mentioned above is not permitted

20

Choice of forms for doing

Business in India

21

Choice of forms for Doing Business in India An Overview

22

Foreign Investor

Unincorporated

entities

Incorporated

entities Partnerships

Public /

Private

company

Liaison

Office

Limited

Liability Partnership

(LLP)

VCF/T

rust

Branch

Office

Project

Office

Wholly owned

Subsidiary /

Joint Venture

Unincorporated entities

23

Liaison

Office

• Can only undertake liaising / representing / promoting / communication activities

• Local expenses have to be met through inward remittances from overseas entity

• Requires registration with RBI and ROC

Branch

Office

• Can undertake activities – export / import of goods, professional / consultancy services,

research work, technical / financial collaborations, buying / selling agent, IT services /

development of software, technical support, foreign airline & shipping company

• Cannot undertake retail trading activities, manufacturing / processing activities

• Can acquire property but not for leasing / renting

• Requires registration with RBI and ROC

Project

Office

• Foreign Companies planning to execute specific projects in India can set up project/site

offices in India if it has secured contract from Indian company

• Project Office cannot undertake or carry on any activity other than the activity relating and

incidental to execution of the project

• Funded directly by inward remittance (or) bilateral or loan from multilateral International

Financing Agency (or) project has been cleared by an appropriate authority (or) Indian

company who has awarded contract has been granted Term Loan by a Public Financial

Institution or a bank in India for the project

• Requires intimation with RBI (if above conditions are met) and registration with ROC

Foreign Direct investment in Partnership Firms

24

Investments by non-residents other than NRI/ PIO – RBI prior permission required

Investments by NRI / PIO with

repatriation benefits - RBI

prior permission

NRI / PIO resident outside India may invest by way of

contribution of capital on non-repatriation

basis

Not Permitted:

Investment in Firm /

proprietary concern

engaged in agricultural /

plantation activities, real

estate business , print

media

sector

Foreign Direct investment in Venture Capital Fund (VCF)

/ Trust

25

Only SEBI registered FVCI may contribute up to 100% of

the capital of an Indian Venture Capital Undertaking /

VCF / Other companies FVCI may also set up a Domestic asset management company to manage the fund

FDI in Trusts other than

VCF is not permitted

Foreign Direct investment in LLPs

100% FDI is allowed:

• Activities currently eligible for 100% FDI under automatic route

• Prior approval from FIPB

• LLPs with FDI cannot make downstream investment

• FII and FVCI investment not permitted in LLPs

• Foreign Capital participation in LLPs allowed only by way of cash consideration

• LLPs with FDI cannot raise foreign currency loan (ECB)

Permissible Activities

Services Trading

IT / ITeS / KPO Wholesale/ B2B/ Exports

Business services, Advertising and films Sourcing

Engineering, technical support and R&D Manufacturing and Processing

Healthcare and medical services Special Economic Zones

Logistics, supply chain management Developers

Hotels, tourism, F&B, restaurants Units

26

NBFCs, Construction Development Projects etc. where FDI Linked performance conditions

are prescribed or LLPs engaged in agricultural/plantation activity, print media or real estate

business – Not permitted

Investment Instruments

27

Investment instruments – Shares

Shares

Equity shares Preference shares

Compulsorily Convertible i.e. Non- Redeemable

Treated as Equity

Non-Convertible i.e. Redeemable

Treated as Debt (ECB)

Foreign investments in Equity shares allowed as per

FDI Guidelines

28

Debt

Compulsorily

Convertible

i.e. Non-Redeemable

Treated as

Equity for FDI Treated as Debt

(ECB)

Non-Convertible

i.e. Redeemable

Treated as Debt

(ECB)

Investment instruments – Debt

29

Loan Debenture

29

FCCB / DR

Treated as

Equity for FDI

Equity

• Ownership rights

• Limited Redemption

• No cap on rate of

dividend (Transfer to

reserve)

CCD

• Carry fixed rate of interest

• Conversion into Equity as

per term of Issue

• RPS/OCPS/NPS regarded

as ECB .

• Coupon rate – SBI PLR +

300 basis points

Foreign company

Indian company

CCPS

• Carry fixed rate of

Dividend

• Conversion as per

Company Law

• RPS/OCPS/NPS

regarded as ECB .

• Maximum Coupon rate –

SBI PLR + 300 basis

points

Instruments other than stated above like Options, Warrants, Partly paid etc. require prior approval of FIPB

Eligible Instruments for FDI

30

Pricing of Instrument

Fresh Issue

• Listed Cos. - SEBI Guidelines

• Unlisted Cos.- Atleast DCF

Preferential Allotment

• Listed Cos. –At least at a price as per Preferential Allotment SEBI Guidelines

• Unlisted Cos.- Atleast DCF

Rights Issue

• Listed Cos.- As determined by Co.

• Unlisted Cos. – Not less than price offered to resident S/H

Transfer

R to NR:

• Listed Co.- Not less than the price at which preferential allotment are made

• Unlisted Co – Atleast DCF

• NR to R: • Listed Co. Not

more than Minimum price at which preferential allotment made

• Unlisted Co - Not more than DCF

31

• The price/ conversion formula of convertible capital instruments should be determined upfront at the time of issue of the

instruments.

• The price at the time of conversion should not be lower than the fair value worked out, at the time of issuance of such

instruments [the DCF method of valuation for the unlisted companies and valuation in terms of SEBI (ICDR) Regulations, for

the listed companies].

Consideration for Investment

• Inward Remittance

• Debit of FC A/C in India

Cash

• Automatic

• ECB Conversion

• Royalty

• FTS

• Approval Route -FIPB

• Import of Plant & Machinery (other than second hand machinery)

• Pre-Incorporation Expenses

• Preliminary Expenses

Non Cash

32

Shares to be allotted or refund to be made within 180 days of receipt of subscription money

FDI and downstream investment

33

FDI Rule Downstream investment Rule

In Operating

company

Governed by

relevant sectorial

policies

In Operating companies by

operating cum investing

company

Governed by

relevant sectorial

policies

In Operating and

investment

company

Notification to

FIPB within 30

days of

investment

In Operating company by

investing company

Governed by

relevant sectorial

policies

In investment

companies

Requires prior

FIPB approval

by Non-operating and non-

investing company

Governed by

relevant sectorial

policies

In Non-operating

and non-investing

company

Requires prior FIPB approval

Reporting and Remittance

Reporting

• Investment : 30 days RBI reporting on receipt of money :FC(GPR) to RBI in 30 day through AD for FDI, ESOP, Right, Bonus, M&A, ECB, FCCB, ADR/GDR

• Transfer Stage : FC(TRS) to AD within 60 days of receipt of amount of consideration

Remittance

• Through Authorized Dealer subject to WHT:

• Dividend

• Interest

• Sale Proceeds of shares and other instruments

• Winding up/ Liquidation: Auditor Certificate for no o/s Liabilities or adequately provided for, If voluntary W/L no pending legal proceeding

34

Recent Developments

Existing JV

• No more a stumbling point. No JV Partner approval required

Escrow Account

• Earlier exempted for SAST, Exit Offer and Delisting only

• Now permitted for all subject to:

• Non Interest bearing

• Non fund based

• No Forex Risk

• Closed in 6 month

• SEBI/FEMA compliant

• Upfront disclosure in Escrow Agmt. about terms of JV

Pledge of Shares

It include “Transfer” includes sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien; Earlier exemption was available for sale or gift of shares only

Now Pledge permitted:

Indian promoter can pledge its shares of ICo or Group Co for ECB if NOC from AD

• NR can pledge its shares in ICo in favour of AD Bank for raising loan by ICo from Indian Bank

• NR can pledge its shares in ICo in favour of O/S Bank to secure credit facilities to NR or its O/S group company

35

So what‟s

new…

External Commercial

Borrowing

36

External Commercial Borrowings ('ECB')

Definition:

• ECB refers to:

‒ commercial loans;

‒ buyers‟ credit;

‒ suppliers‟ credit;

‒ securitized instruments availed of from non-resident lenders with a minimum average

maturity of 3 years

Types:

• External Commercial Borrowings

• Foreign Currency Convertible Bonds

• Preference shares (i.e. non-convertible, optionally convertible or partially convertible)

• Foreign Currency Exchangeable Bond (FCEB)

• ECB can be accessed under two routes, viz., (i) Automatic Route; (ii) Approval Route

37

External Commercial Borrowings

Automatic route – no approval required

Eligible borrowers:

• Indian companies (Real Sector/ Infrastructure Sector) except those engaged in financial

sector

• Units in SEZ

• NGO's engaged in micro finance activities

Eligible lenders:

• International banks;

• International Capital Markets

• Multilateral financial institutions;

• Export credit agencies;

• Suppliers of equipment;

• Foreign collaborators; and

• Foreign equity holders with the prescribed equity holding (other than erstwhile OCBs)

Permissible end-uses – capital investments, overseas acquisitions, etc. – excludes

general corporate purposes, working capital requirements (except civil aviation) and real

estate sector

38


Amount and Maturity

• Corporate other than hotel, hospital and software company can avail USD 500 million per

year

• Hotels, Hospitals and software sectors can avail USD 100 million per year

• The overall ECB ceiling for the entire civil aviation sector would be USD 1 billion and the

maximum permissible ECB that can be availed by an individual airline company will be

USD 300 million

• ECB in civil aviation can be utilized for working capital as well as refinancing of the

outstanding working capital Rupee loan(s) availed of from the domestic banking system

Security – choice of parties – NOC required from Authorized Dealer for security in shares,

immovable property and issuance of guarantees

Rate of interest:

Three years and up to five years 6 month Libor + 300 basis points

More than five years 6 month Libor + 500 basis points

Parking of ECB proceeds

• As per the RBI/2011-12/539 A. P. (DIR Series) Circular No.119 the ECB proceeds meant

for Rupee expenditure are repatriated to India immediately after drawdown

• In either case, loan has to be registered with the RBI before draw-down – thereafter,

monthly reports regarding utilization

39


Approval route

• Eligible Borrowers:

On lending by the EXIM Bank

Banks and financial institutions - which had participated in the textile or steel sector restructuring

package

Non-Banking Financial Companies (NBFCs)

Infrastructure Finance Companies (IFCs)

Housing Finance Companies

Special Purpose Vehicles, or any other entity notified by the Reserve Bank, set up to finance

infrastructure companies / projects

Multi-State Co-operative Societies engaged in manufacturing activity

SEZ developers

Corporates in the services sector viz. hotels, hospitals and software sector – beyond USD100

millions

Corporates which have violated the extant ECB policy

• Amount and Maturity:

ECB beyond USD 100 million - corporates in the services sector viz. hotels, hospitals and

software sector

The proceeds of the ECBs should not be used for acquisition of land

Corporates can avail ECB of an additional amount of USD 250 million (over and above USD 500

million under approval route) with the average maturity of more than 10 years

• Interest rates – same as approval route 40


ECB End use restrictions:

• For lending or investing in capital market or acquiring a company in India;

• Real estate

• Working capital , general corporate purposes and repayment of existing rupee loans

(except civil aviation sector)

Foreign Currency Exchangeable Bonds:

• means a bond expressed in foreign currency, the principal and interest in respect of which

is payable in foreign currency, issued by an Issuing Company and subscribed to by a

person who is a resident outside India

End-use of FCEB proceeds:

• Overseas by way of direct investment including in JVs or WOS abroad

• May be invested by the issuing company in the promoter group companies

Rate of Interest – As specified by ECB policy

Pricing norms:

• Average weekly high and low of the closing prices of the shares during the six months

• Average weekly high and low of the closing prices of the shares during the two weeks

Maturity: Minimum maturity of FCEB shall be five years

41

Conversion of External Commercial Borrowings

Permitted under following conditions:

• Activity of the company falls under automatic route / approval has been obtained if activity

falls under approval route

• Foreign equity holding after such conversion is within the sectoral cap, if any

• Pricing of shares is as per

SEBI guidelines – listed company

Valuation of CA – unlisted company

Borrowers to report:

• In form FC-GPR to regional office , RBI and form ECB-2 to DSIM, RBI within 7 days from

the close of the month to which it relates

• In case of partial conversion, the outstanding portion of ECB shall be reported in ECB-2

to DSIM, RBI in the subsequent months

42

43

• Borrowers are experiencing difficulties in raising ECBs

• The Reserve Bank has thus decided to continue with the enhanced all-in-cost ceiling

for ECBs

• Enhanced ceiling to be applicable for a further period of 6 months

Review of All-in-cost Ceiling for ECBs

Maturity Period All in cost over 6 months LIBOR

3 years and up to 5 years 350 bps

More than 5 years 500 bps

So what‟s

new…

44

• Borrowers desirous of refinancing an existing ECB can now raise fresh ECB at a higher

all-in-cost

• Those wanting to reschedule an existing ECB can now do so at a higher all-in-cost

• Refinancing/ rescheduling to be done under the approval route.

Refinancing/ Rescheduling of ECBs

Condition: The enhanced all-in-cost cannot exceed the all-in-cost ceiling

prescribed in the existing guidelines

So what‟s

new…

45

Enhancement of Refinancing Limit of ECBs

• Applicable to Indian companies in the power sector

• Permitted to utilize up to 40% of fresh ECB raised towards refinancing of Rupee loans

availed from the domestic banking system

• Utilization to be done under the approval route

Condition: At least 60% of the fresh ECB raised is to be utilized for fresh capital

expenditure for infrastructure projects

So what‟s

new…

46

ECBs for Aviation Sector

• Working capital now a permissible end-use of ECBs raised by the civil aviation sector

• Overall ECB ceiling for aviation sector – USD 1 Billion

• To be allowed under the approval route

• Conditions:

‒ Must be a company registered under the Companies Act, 1956

‒ Possess a scheduled operator permit license from DGCA for passenger

transportation

‒ Permissibility based on certain conditions like cash flow, foreign exchange earnings

and capability to service the debt

‒ ECB to be raised within twelve months, that is, by 24 April 2013

‒ Can be raised with a minimum average maturity period of three years

‒ Maximum permissible ECB that can be availed by an individual airline company is

USD 300 million

‒ Limit can be utilized for working capital as well as refinancing of any outstanding

working capital Rupee loans availed of from the domestic banking system

‒ Such ECBs not allowed to roll over

So what‟s

new…

Utilisation of ECB proceeds for Rupee expenditure

• Presently, ECB proceeds can be utilized for permissible foreign currency expenditure

and Rupee expenditure

• RBI has directed borrowers to provide bifurcation of utilization of ECB proceeds towards

foreign currency and Rupee expenditure in Form prescribed

• RBI clarified that primary responsibility to ensure that ECB proceeds meant for Rupee

expenditure in India are repatriated to India for credit to Rupee accounts is on borrower

concerned

47

So what‟s

new…

Overseas Direct Investment

48

Overseas Direct Investment ('ODI')

Benefits:

• Promoting global business by Indian entrepreneurs

• Transfer of technology and skill

• Sharing of results of R&D

• Access to wider global market

• promotion of brand image

• generation of employment

• utilisation of raw materials available in India and in the host country

Legal Framework:

• Section 6 of the FEMA provides powers to the RBI to specify classes of capital account

transactions in consultation with the Government.

• Section 6(3) of the FEMA provides powers to the RBI to prohibit, restrict or regulate

transactions

Prohibitions:

• Making investment in a foreign entity engaged in real estate but excludes development of

townships, construction of residential/commercial premises, roads or bridges

• Banking business, without the prior approval of the RBI

49


General Permission:

• Out of the funds held in RFC account

• Bonus shares on existing holding of foreign currency shares

• Out of their foreign currency resources outside India

• General permission is also available to sell the shares so purchased or acquired

ODI Routes

• Automatic route – no government approval required

• Approval route – approval of the RBI

Who can Invest?

• Indian Companies (ownership not relevant)

• Registered Partnership firms – Approval route

• Resident Individuals – Approval route

• Registered Trusts/ Societies – Approval route

• Any other entity notified by RBI – Approval route

50


Automatic Route - Financial commitment by Indian party:

• Investment in overseas JV / WOS, not exceeding 400 per cent of the net worth

• 400 per cent of net worth excludes:

‒ Investment is made out of balances held in EEFC account

‒ Funds raised through ADRs/GDRs

• The above ceiling of 400 percent includes:

‒ Contribution to the capital of the overseas JV/WOS

‒ Loan granted to the JV/WOS

‒ 100 percent of the guarantees given to the JV/WOS other than performance guarantee

‒ 50 per cent of the amount of performance guarantees

Issue of guarantee by an Indian Party to step down subsidiary of JV / WOS:

• Permitted under automatic route - Irrespective of direct subsidiary is operative company

or SPV, Indian party may extend corporate guarantee

• May be extended to SPVs

• Financial commitment of the Indian Party is within the extant limit of ODI

• Such guarantee shall be reported to RBI in Form ODI through the AD

• Issuance of corporate guarantee to subsequent level step down operating subsidiaries

will be considered under the Approval Route

51


Investment through Special Purpose Vehicle (SPV):

• Approval under automatic route

• Such investment subject to following conditions

‒ Indian party is not included in the RBI's caution list

‒ Under investigation by the Directorate of Enforcement

‒ Indian party included in the list of defaulters to the banking system

Method of Funding:

• Drawal of foreign exchange from an AD bank in India

• Capitalization of exports

• Swap of shares

• proceeds of ECBs / FCCBs

• Exchange of ADRs/GDRs

• Balances held in EEFC account

• Proceeds of foreign currency funds raised through ADR / GDR

Capitalization of Export proceeds:

• permitted to capitalize towards exports, fees, royalties or any other dues from the foreign

entity for supply of technical know-how, consultancy, managerial and other services within

the ceilings applicable

• Software exporters allowed to receive 25% of their export proceeds in the form of shares

52


Investments in Financial Services Sector:

• Investment in an entity outside India, which is engaged in the financial sector, should fulfill the

following additional conditions:

‒ Registered with the regulatory authority in India

‒ Company has earned profit during the preceding three financial years

‒ Has obtained approval from the regulatory authorities in India as well as abroad

‒ has fulfilled the prudential norms relating to capital adequacy

Portfolio Investments by listed Indian companies:

• Listed Indian companies are permitted to invest up to 50 per cent of their net worth as on the date of

the last audited balance sheet in followings;

‒ shares

‒ bonds / fixed income securities

Investment by Mutual Funds:

• Indian Mutual Funds registered with SEBI are permitted to invest within an overall cap of USD 7

billion in :

‒ ADRs / GDRs of the Indian and foreign companies

‒ Listed overseas companies equity shares

‒ IPO / FPO of overseas companies

‒ Foreign debt securities

‒ Money market instruments rated not below investment grade

‒ Government securities rated not below investment grade

‒ Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with

underlying as securities

53


• Short-term deposits with banks overseas where the issuer is rated not below investment

grade; and

• Units / securities issued by overseas Mutual Funds or Unit Trusts

• A limited number of qualified Indian Mutual Funds , are permitted to invest cumulatively

up to USD 1 billion in overseas Exchange Traded Funds as may be permitted by SEBI

• Domestic Venture Capital Funds registered with SEBI may invest in equity and equity

linked instruments subject to overall limit of USD 500 million

Overseas investment by Registered Trust / Society:

• Registered Trusts and Societies engaged in manufacturing / educational / hospital sector

are allowed to make investment in the same sector in a JV/WOS with the prior approval

of RBI:

• Eligibility Criteria:

‒ The Trust / Society should be registered

‒ Trust deed / MoA of society permits the proposed investment

‒ Proposed investment should be approved by the trustee/s

‒ Trust / Society is KYC compliant

‒ Trust has been in existence at least for a period of three years

‒ Trust / Society has not come under the adverse notice of any Regulatory / Enforcement agency

54


Write – off of capital and receivables of Overseas entity:

• Indian promoters who have set up WOS abroad

• have at least 51 per cent stake in overseas JV

Indian company may write off capital (Equity / preference) or other receivables in JV /

WOS as follows:

• Listed Indian companies - 25% of equity investment / receivable under the Automatic

Route

• Unlisted companies – 25% of equity investment / receivable under the Approval Route

• Write -off / restructuring have to be reported to the Reserve Bank within 30 days

Transfer by way of sale of shares of a JV / WOS:

• Indian Party may transfer by way of sale to another Indian Party or to a person resident

outside India of any share / security held in JV / WOS subject to the following conditions:

‒ The sale does not result in any write off of the investment

‒ The sale is effected through a stock exchange

‒ If the shares are not listed on the stock exchange then the value certified by a Chartered

Accountant / Certified Public Accountant as the fair value of the shares based on the latest audited

financial statements

‒ Indian party does not have any outstanding dues by way of dividend, technical know-how fees,

royalty, consultancy, commission or other entitlements and / or export proceeds from JV / WOS

55


• Overseas concern has been in operation for at least one full year and the APR together

with the audited accounts for that year has been submitted to the Reserve Bank

• Indian party is not under investigation by CBI / DoE/ SEBI / IRDA or any other regulatory

authority in India

• Indian entity is required to submit details within 30 days from the date of disinvestment

Transfer by way of sale of shares of a JV / WOS involving Write off of the investment:

• Indian Parties may disinvest, without prior approval of the Reserve Bank incase;

‒ The JV / WOS is listed in the overseas stock exchange

‒ Indian Party is listed on a stock exchange in India and has a net worth of not less than Rs.100

crore

‒ Indian Party is an unlisted company and the investment in the overseas venture does not exceed

USD 10 million

‒ Indian Party is a listed company with net worth of less than Rs.100 crore but investment in an

overseas JV/WOS does not exceed USD 10 million

56

Other forms of Investment Overseas

Setting up of branch overseas:

• No equity investment

• Extension of the Head office

• No separate entity

• Liabilities could be passed on to Indian Company

• Subject to local country laws

• Current Account Transactions under FEMA

Investments by Residents:

• Shares in overseas entity gifted by non residents

• Acquisition of shares under a „Cash less‟ route – no outward remittance

• Assets inherited outside India

• Shares of Foreign Company by Indian employees

‒ Sale of those shares allowed

‒ Repatriation of forex within 90 days

• In Qualification shares for overseas Directorships

• ESOPS of WOS/ JV

• ADR/ GDR ESOPS of the Indian Companies

‒ Limit of $ 50 K in a block of five years

• In any other investment up to $ 200K in a FY – Permitted Capital and current account

transactions- General approval 57

Other forms of Investment Overseas

Investment by way of share swap:

• Indian party has to obtain FIPB approval

• Valuation has been done as per the laid-down procedures

Post Investment Regulatory filings:

• Getting UIN (Unique Identification Number)

• Submitting Share Certificates or similar documents

• Filing Annual Performance Report (Form APR)

• Periodical ODI forms for Follow-on investments

• Intimation of Step Down Investments

• Intimation regarding winding up within 30 days and remittance of sale/ liquidation

proceeds within 90 days

• Filing form APR every year

58

59

Overseas Direct Investments

The liberalizations/ rationalizations announced by the RBI aim to provide an impetus to

boost Overseas Direct Investments (ODI) and widen the class of investors investing

outside India and also provide the much needed operational flexibility.

The liberalized ODI facilities are applicable to:

• Resident Individuals; and

• Indian Parties

So what‟s

new…

60

ODI- Facilities for Resident Individuals

• The Reserve Bank has granted general permission to resident individuals in respect of

the following:

Qualification shares for holding the post of director in the overseas entity

Professional services rendered to the overseas entity or in lieu of director‟s remuneration

ESOP scheme

Acquiring

equity shares

in a foreign

company by

way of

So what‟s

new…

61

Acquiring qualification shares in a foreign company for holding the post of director

• Applicable to resident individuals

• Present restriction on acquisition not exceeding 1% of the paid-up capital of the foreign

company has been removed

• Can now acquire foreign securities as qualification shares

• Acquisition must be in accordance with the qualification shares requirement as per the

laws of the host country

Remittance of the amount for acquiring such qualification shares to fall within the

overall ceiling prescribed under the Liberalized Remittance Scheme (LRS)


So what‟s

new…

62

Acquiring shares towards professional services/ in lieu of director’s remuneration

• Applicable to resident individuals

• Can now acquire shares of a foreign entity in part or full consideration of professional

services rendered to the foreign company or in lieu of director‟s remuneration

Limit in terms of value of such shares acquired will be the overall ceiling prescribed

under the Liberalized Remittance Scheme (LRS)


So what‟s

new…

63

Acquiring shares in a foreign company through ESOP scheme

• Applicable to resident employees and directors of the Indian Company

• Can accept shares under an ESOP Scheme, offered by the foreign entity globally on a

uniform basis

• Annual Return to be submitted by the Indian company to the Reserve Bank through the

AD Category – I bank giving details of remittances/ beneficiaries

• Allowed to accept the shares irrespective of the percentage of direct or indirect equity

stake the foreign entity holds in the Indian company


So what‟s

new…

64

ODI- Facilities for Indian Parties

Creation of charge

• Indian party now permitted to create charge in the form of pledge/ mortgage/

hypothecation on the immovable/ movable property and other financial assets of the

Indian party and its group companies

• Creation of charge under the approval route

• Conditions

‒ Must be within the overall limit (presently 400%) of the financial commitment

‒ Indian party and its group companies to submit a “No Objection” from their Indian

lenders

• Appropriate reporting mechanism for capturing the financial commitment on account of

creation of such charge will be introduced separately.

So what‟s

new…

65

Reckoning bank guarantee issued on behalf of JV/ WOS

• This facility relates to a bank guarantee issued by a resident bank on behalf of an

overseas joint venture (JV) or a wholly-owned subsidiary (WOS) of an Indian party,

which is backed by a counter guarantee or collateral by the Indian party,

• Such bank guarantee to be reckoned for computation of the financial commitment of

the Indian party


So what‟s

new…

66

Issuance of personal guarantee

• Applicable to indirect resident individual promoters of the Indian party

• Now allowed to issue personal guarantee in the same manner as allowed under the

General Permission for direct promoters


So what‟s

new…

67

Financial Commitment without equity contribution to JV/ WOS

• Proposals for undertaking financial commitment without equity contribution in JV/ WOS

may be considered by RBI

• Allowed under the approval route

• AD banks to forward the proposals after ensuring that the laws of the host country

permit incorporation of a company without equity participation by the Indian party


So what‟s

new…

68

Submission of Annual Performance Report

• Indian party can file the Annual Performance Report for each JV or WOS outside India

on the basis of unaudited annual accounts of the JV/ WOS in cases where the law of

the host country does not mandatorily require auditing of the books of account of the

JV/ WOS

• Conditions:

‒ Statutory Auditors of the Indian party to certify that the unaudited annual accounts of

the JV/ WOS reflect a true and fair picture of the affairs of the JV/ WOS

‒ The unaudited annual accounts of the JV/ WOS are adopted and ratified by the

Board of the Indian party


So what‟s

new…

69

Contribution by way of Compulsorily Convertible Preference Shares (CCPS)

• Indian party can now set up or acquire a JV/ WOS outside India by subscribing to the

CCPS of the JV/ WOS.

• The CCPS will be treated at par with equity shares


So what‟s

new…

70

Opening of a Foreign Currency Account to make ODI

• Prior permission of the RBI was required to open, hold and maintain Foreign Currency

Account (FCA) in a foreign country for the purpose of making ODI

• RBI has now liberalized the regulations by granting general permission

• Conditions:

‒ The Indian party is eligible for ODI in terms of the ODI regulations

‒ Host country regulations stipulate that the investments into the country is required

to be routed through a designated account

‒ FCA to be opened, held and maintained as per the host country regulations

‒ Remittances to the FCA to be utilized only for making ODI in the JV/ WOS abroad

‒ Amount received in the account by way of dividend or other entitlements to

repatriated to India within 30 days from the date of credit

‒ FCA to be closed within 30 days from the date of disinvestment

from JV/ WOS or cessation thereof.


So what‟s

new…

Exports & Imports

71

Export and Import of Goods

Exports of Goods & Services

• Exporter under dual obligation

Furnish true and correct material particulars including full export value

Furnish on information required by RBI to ensure repatriation of export proceeds

• Declaration to be submitted by exporter when exporting goods or software in physical

form

‒ Form GR : Export otherwise than by Post including export of software in physical form i.e.

magnetic tapes/discs and paper media (to customs authorities)

‒ Form SDF : To be appended to the shipping bill, for exports declared to Customs Offices notified

by the Central Government which have introduced Electronic Data Interchange (EDI) system for

processing shipping bills notified by the Central Government

‒ Form PP: Export by Post- Authorised Dealer

‒ Form Softex: Export of software otherwise than in physical form, i.e. magnetic tapes/discs, and

paper media- designated official of STPIs/Free Trade Zones (FTZs)/Export Processing Zones

(EPZs) /Special Economic Zones (SEZs)

‒ Export of services no particular Forms specified the exporter may export such services without

furnishing any declaration but would be required to be realise and repatriate the payment for

these services as per the FEMA

72


• Certain exemptions from this requirement

‒ Trade samples of goods and publicity materials supplied free of payment

‒ Personal effects of travellers

‒ Goods or software accompanied by a declaration by the exporter that they are not more than USD

25,000 in value

‒ By way of gift of goods accompanied by a declaration by the exporter that they are not more than

Rs. 5 lakh in value

‒ Goods imported free of cost on re-export basis

‒ Goods sent outside India for testing subject to re-import into India

• Period within which export value of goods/software to be realised and repatriated

‒ SEZ Units : No time specified

‒ EOU/STP/EHTP/BTP units: Within a period of 12 months

73


• Exports requiring prior approval

‒ Export of goods on lease, hire etc.- only on approval

‒ Counter Trade: Any arrangement involving adjustment of value of goods imported into India

against value of goods exported from India, shall require prior approval of the Reserve Bank

• Advance payment against exports

‒ Where an exporter receives advance payment (with or without interest), from a buyer

outside India, the exporter shall be under an obligation to ensure that –

• Goods are shipped within one year from the date of receipt of advance payment;

• the rate of interest, if any, payable on the advance payment does not exceed London Inter-Bank

Offered Rate (LIBOR) + 100 basis points, and

• the documents covering the shipment are routed through the authorised dealer through whom

the advance payment is received;

• If exporter is unable to ship goods (partly or fully) within one year from the date of receipt

of advance payment, remittance of refund of unutilised portion of advance payment or

payment of interest to be made only with prior approval of RBI

74


Import of goods and services

• Persons, firms, companies making payments exceeding USD 500 or equivalent towards

imports into India - Form A1

• Importer to submit proof of import goods into India like Exchange Control copy of the Bill

of Entry, Postal Appraisal Form or Customs Assessment Certificate, etc., as proof that

goods equivalent to the value of remittance have been imported

• Evidence of imports:

‒ Goods- bill of entry for home consumption/warehousing

‒ Non physical imports like software/drawings/designs etc received via the internet- CA certificate

stating receipt of such software/drawings/designs

‒ None specified for any services

75


• Time limit

‒ Remittances against imports should be completed not later than six months from the date of

shipment

• Deferred payment arrangements:

‒ Deferred payment arrangements including suppliers and buyers credit, providing for payments

beyond a period of 6 months from date of shipment up to a period of less than 3 years are treated

as trade credits and External Commercial Borrowings guidelines applicable

• Advance remittance for Imports of goods allowed

‒ Where exceeds USD 200,000 : unconditional, irrevocable Letter of Credit or bank guarantee to be

furnished

• Advance remittance for Imports of services allowed

‒ Where amount of advance exceeds USD 500,000 bank guarantee by international bank to be

furnished

76

Immovable Property

77

Acquisition of Immovable property in India by NRI/PIO

Foreign national of non-Indian origin, resident outside India cannot purchase any

immovable property in India unless acquired by way of inheritance from a person who was

resident in India (exception: lease not exceeding five years)

78

Indian citizen resident outside India Person of Indian Origin (PIO)

Cannot acquire agricultural land/farm

house/plantation

Cannot acquire agricultural land/farm

house/plantation

Can acquire any immovable property in

India

Can acquire immovable property by gift

from person resident in India, person

resident outside India who is a citizen of

India or another PIO

Can transfer any immovable property in

India to a person resident in India, resident

outside India who is a citizen, PIO

Can acquire any immovable property by

inheritance from person resident outside

India

Transfer by sale to person resident in India

Transfer by gift (commercial/residential

property to resident, non-resident or PIO

Bank Accounts

79

Bank Account facilities available for NRI/PIO

80

Non Resident Ordinary Rupee Account (NRO Account)

Who can open account: Any person resident outside India

Savings/current/recurring/ FD

Account denominated in INR

Permissible Credits:

• transfers from rupee accounts of non-resident banks

• remittances received in permitted currency from outside India through normal

banking channels

• permitted currency tendered by account holder during his temporary visit to India

• legitimate dues in India of the account holder like current income like rent, dividend,

pension, interest, etc.

• sale proceeds of assets including immovable property acquired out of rupee/foreign

currency funds or by way of legacy/ inheritance

Permissible debits:

• all local payments in rupees

• remittance outside India of current income like rent, dividend, pension, interest, etc.,

net of applicable taxes, of the account holder


81

Non Resident Ordinary Rupee Account (NRO Account)

Not repatriable except for the following:

i) current income

ii) up to USD 1 million per financial year (April-March) for any bona fide purpose out of

balances in the account e.g., sale proceeds of assets in India acquired by way of

purchase/ inheritance / legacy inclusive of assets acquired out of settlement subject to

certain conditions

Banks free to fix interest rates though should not exceed normal domestic savings

account


82

Non-resident (external) Rupee Account (NRE Account)

Who can open account: NRIs

Savings/current/recurring/FD

Account maintained in INR

Accrued interest income and balances held in NRE accounts are exempt from Income

tax and Wealth tax, respectively

Permissible credits:

• inward remittance to India in permitted currency

• proceeds of account payee cheques, demand drafts / bankers' cheques, issued

against encashment of foreign currency

• transfers from other NRE / FCNR accounts

• sale proceeds of FDI investments

• interest accruing on the funds held in such accounts

• interest on Government securities/dividends on units of mutual funds purchased by

debit to the NRE/FCNR(B) account of the holder


83

Non-resident (external) Rupee Account (NRE Account)

Permissible debits:

• local disbursements

• transfer to other NRE / FCNR accounts of person eligible to open such accounts,

remittance outside India

• investments in shares / securities/commercial paper of an Indian company

Fully repatriable

Banks free to fix interest rates- not to exceed normal domestic rates


84

Foreign Currency Non Resident Bank Account (FCNR-B Account)

Who can open account: NRIs

Term deposits- 1 to 5 years

All debits / credits permissible in respect of NRE accounts, including credit of sale

proceeds of FDI investments, are permissible in FCNR (B) accounts also

Account can be in any freely convertible currency

Interest rates: LIBOR +125 basis points for the currency concerned

Repatriable

Bank Account facilities available for returning NRI/PIO

85

Resident Foreign Currency Account (RFC Account)

Returning NRIs /PIOs may maintain Resident Foreign Currency (RFC) Account to

transfer balances held in NRE/FCNR(B) accounts

Savings/current/term deposits

Proceeds of assets held outside India at the time of return can be credited to RFC

account

Funds in RFC accounts are free from all restrictions regarding utilisation of foreign

currency balances including any restriction on investment in any form outside India

RFC accounts can be maintained in the form of current or savings or term deposit

accounts, where the account holder is an individual and in the form of current or term

deposits in all other cases

Banks can fix interest rates

Other Bank Account facilities

86

Exchange Earner’s Foreign Currency Account (EEFC Account)

• Facility provided to foreign exchange earners (including exporters) to credit 100% of

their foreign exchange earnings to the account

• Account holders do not have to convert foreign exchange into Rupees and vice

versa, thereby minimizing the transaction costs

All categories of foreign exchange earners, such as individuals, companies, etc. who

are resident in India, may open EEFC accounts

Current account- no interest payable

Credit up to 100 % of foreign exchange earnings into the EEFC account allowed

subject to permissible credits and debits

SEZ units not allowed to open EEFC account

Permissible Credits:

• Inward remittance through normal banking channels other than remittances

received on account of foreign currency loan or investment received from abroad or

received for meeting specific obligations by the account holder

• Payments received in foreign exchange by a 100% EOU/STPI/EHTP for supply of

goods to similar such units or to a unit in Domestic Tariff Area

• Payments received in foreign exchange by a unit in the Domestic Tariff Area for

supply of goods to a unit in the Special Economic Zone (SEZ);

Bank Account facilities available for returning NRI/PIO

87

Exchange Earner’s Foreign Currency Account (EEFC Account)

• Payment received by an exporter from an account maintained with an authorised

dealer for the purpose of counter trade

• Advance remittance received by an exporter towards export of goods or service

• Professional earnings including directors fees, consultancy fees, lecture fees,

honorarium and similar other earnings received by a professional by rendering

services in his individual capacity;

• Re-credit of unutilised foreign currency earlier withdrawn from the account;

• Amount representing repayment by the account holder's importer customer, of

loan/advances granted, to the exporter holding such account;

Permissible Debits:

• Payment outside India towards a permissible current account and capital account

transactions

• Payment in foreign exchange towards cost of goods purchased from a 100%

EOU/EHTP/STPI

• payment of customs duty in accordance with the provisions of the Foreign Trade

Policy

• Trade related loans/advances, extended by an exporter holding such account to his

importer customer outside India

• Payment in foreign exchange to a person resident in India for supply of

goods/services including payments for airfare and hotel expenditure

88

Opening of a Foreign Currency Account to make ODI

• Transfer of funds by NRI from NRO account to NRE account within the overall ceiling

of USD 1 million per financial year subject to payment of taxes as applicable is now

permissible

• Such credit of funds to NRE account shall be treated as permissible credits

Transfer of Funds from NRO to NRE account

So what‟s

new…

© 2012 Deloitte Haskins & Sells 89

Case Studies

Case study 1:

Defence Sector

• A India Pvt Ltd – a subsidiary of French Company, providing software

development and back office support to its parent, who is engaged in providing

defence supplies globally

• Is 100% FDI permitted in A Ltd? – being software and services provider or will

the cap of 26% apply to it being services in the area of defence?

90

Case study 1:

Defence Sector

• FDI in companies carrying out defence restricted to 26% and subject to

approval of the Government

• Defence approvals subject to licensing under the Industries (Development &

Regulations) Act, 1956

• Does the cap on investments cover only products specified in the Industries

(Development & Regulations) Act, 1956 or does it also include services?

• Services are not subject to licensing

• FIPB‟s view – Contradictary views emerging. In an existing software company

providing defence services - 100% FDI permitted with approval

• While a company exclusively set up for services in the area of defence – FDI

cap applies

91

Case study 2:

Press Note 1/ 2005

• Where there is an existing JV or technical collaboration in India by a foreign

company and the foreign company proposes to set up its own WOS or acquire

stake in another JV in the same or allied field, prior approval of the JV and FIPB

required

• Prior approval of the JV company done away with; approval required only from

FIPB

• Approval/ clarifications to FIPB on same or allied filed - NIC codes

92

Case study 3:

Merger

• Merger of a foreign company into Indian company permitted with the approval

of the jurisdictional High Court

• Shares to be issued to non-resident consequent to the merger

• Regulations liberalised to permit issue of shares subjection FDI policy and

compliances

Issue

• A India Ltd with a NRI promoter sets up another company in Singapore which in

turn has a subsidiary in India AS India Ltd. A India Ltd proposes to merge into

AS India Ltd and a consequence of the merger, no/minimum shares will be

issued to the NRI promoter. Is this a violation of FEMA/FDI guidelines?

93

Case study 4:

Issue of Shares for non-cash consideration

• Issue of shares for non-cash consideration not permitted

• Exceptions – ECB, royalty, FTS received and payable to the foreign company

• Import of capital goods, machinery, equipment, pre-operation and pre-

incorporation expenses can be capitalised and shares issued with FIPB

approval

• Can the following be capitalised with FIPB approval?

‒ Post incorporation expenses

‒ Raw material purchase

‒ Trade payables

‒ Second had machinery

94

Case study 5:

Share Swap

• Share swap transactions based on mutual benefits accruing to both Indian

entity as well as foreign entity

• Reduces cash flow needs while meeting end objectives of investments,

especially for Indian companies making overseas investments

• Swaps permitted subject to approval based on following requirements:

‒ The overseas investment being in accordance with the Overseas Direct Investment

guidelines and the inward investment compliant with FDI policy

‒ Valuation norms in relation to overseas investment, as well as in relation to inbound

investment in the Indian companies, being complied with

Issue:

• In a scenario where a shareholder gives up his shares in an Indian company, in

exchange for shares in a foreign company – would FIPB have the remit to give approval

in such instances?

95

Case study 6:

Issue of share warrants/ partly paid up shares

• Share warrants to be issued with FIPB approval

• Partly paid up shares can be issued only with FIPB approval

96

Questions???

97

FEMA - bangaloreicai.org formalities increased from USD 5000 to USD ... regulations framed under FEMA Regulators ... Foreign Investor Unincorporated entities Incorporated

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