FOREIGN INVESTMENT IN INDIA MASTER CIRCULAR NO.15/2015-16, DATED 1-7-2015 Foreign investment in India is governed by sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time. The regulatory framework and instructions issued by the Reserve Bank have… Read More »
MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 16th September, 2015 G.S.R. 701(E).—In exercise of the powers conferred by the proviso to sub-section (1) of Section 37A of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby prescribes the mandatory threshold of the aggregate value of Foreign Exchange, Foreign… Read More »
INVESTMENT IN SHARES OUTSIDE INDIA INVESTMENT IN FOREIGN SECURITY Question : What are the types of Investment in foreign security ? Transfer or issue of foreign security has three aspects. – (a) Issue of ADR/GDR/FCCB (b) Investment in Joint Venture/Wholly Owned Subsidiary abroad (JV/WOS) (c) Investment by Indian resident or body corporate. Provisions relating to all… Read More »
LENDING IN FOREIGN CURRENCY Question: Who can lend in Foreign Currency ? A ) Lending by Authorised Dealers Provisions are contained in Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000. If the required conditions are not satisfied, borrowing or lending is permissible only with permission of RBI. An authorised dealer in India… Read More »
Borrowing in Rupees on basis of guarantee issued by NRI Question : Can the Person resident outside India gave guarantee of a loan taken in Indian currency by resident in India from another person resident in India ? A person resident in India can borrow in Indian rupees from another person resident in India. Such loan can be guaranteed by a… Read More »
Trade Credits for imports into India Question : What is the meaning of trade credits ? Trade credit means foreign currency credit/loan extended for imports into India, by overseas supplier, bank and Financial Institution for original maturity of less than three years – Schedule III of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)… Read More »
Foreign Currency loan Question: Whether the A person resident in India can borrow in foreign currency ? A person resident in India can raise foreign currency loans with permission of RBI. Provisions are prescribed in Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000. The borrowing in foreign exchange may be from an overseas… Read More »
Property in India by NRI Question: Can NRI hold and retain property and security acquired when he has resident of India ? As per section 6(5) of FEMA, a person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or… Read More »
Investment by NRI in partnership in India Question : Whether the NRI Can invest in partnership or proprietorship firm in India ? are there any restrictions ? Investment by NRI/PIO in partnership/proprietary concern NRI/PIO resident outside India can invest by way of capital of a partnership firm or a proprietary concern on non-repatriation basis, provided that the… Read More »
INVESTMENT SCHEMES FOR NRI Special schemes for NRI 1.1 Various schemes are available for NRI investment in India. ‘Non Resident Indian (NRI)’ means a person resident outside India who is a citizen of India or is a person of Indian origin – Para 2.1.27 of Consolidated FDI Policy Circular No. 1 of 2014 dated 17-4-2014… Read More »