Fema / RBI News, Articles, Notifications and Forms

  • Aug
  • 03
  • 2015

Composite Caps for Simplification of FDI policy to attract foreign investment

Added In RBI / FEMA
Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion (FC-I Section) Press Note No. 8 (2015 Series), Dated: 30th July, 2015 Subject: Introduction of Composite Caps for Simplification of Foreign Direct Investment (FDI) policy to attract foreign investments The Government of India has reviewed the extant FDI policy on various […]

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  • Jul
  • 27
  • 2015

Salient Features of Gold Deposit Scheme (GDS)

Added In RBI / FEMA
Gold Deposit Scheme (GDS): Salient Features Include-All Designated Banks can Operate GDS as per Guidelines Issued by RBI; Banks Issue a Passbook/Certificate to Depositor; Resident Indians Can Invest etc. The Central Government, with a view to bring privately held stock of gold in circulation, to reduce the country’s reliance on import of gold and to […]

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  • Jul
  • 22
  • 2015

Issue of ESOP and/or Sweat Equity to persons resident outside India

Added In RBI / FEMA
The Reserve Bank of India has notified Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 to prohibit, restrict or regulate, transfer or issue security by a person resident outside India.

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  • Jul
  • 22
  • 2015

Prior RBI Approval In Cases of Acquisition/ Transfer of Control of NBFCs

Added In RBI / FEMA
This circular RBI/2015-16/122 dated July 9, 2015 has been issued in continuance of DNBS (PD) CC.No.376/03.10.001/2013-14 and Notification No. DNBS (PD) 275/GM(AM)-2014 dated May 26, 2014 wherein ‘Non-Banking Financial Companies (Approval of Acquisition or Transfer of Control) Directions, 2014’ have been given.

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  • Jul
  • 17
  • 2015

RBI issues revised guideline on Concurrent Audit System in Commercial Banks

Added In RBI / FEMA
RBI/2015-16/133 DBS.CO.ARS.No. BC. 2/08.91.021/2015-16 July 16, 2015 The Chairman & Managing Director/ Chief Executive Officers of all Scheduled Commercial Banks (other than Regional Rural Banks) Dear Sir Concurrent Audit System in Commercial Banks – Revision of RBI’s Guidelines As you are aware, guidelines on ‘concurrent audit system in commercial banks’ were issued by us vide […]

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  • Jul
  • 16
  • 2015

RBI Guideline on Issue of ESOPs to person resident outside India by Indian Companies

Added In RBI / FEMA
On a review, it has been decided that an Indian company may issue employees’ stock option and/or sweat equity shares to its employees/directors or employees/directors of its holding company or joint venture or wholly owned overseas subsidiary/subsidiaries who are resident outside India, provided that : The scheme has been drawn either in terms of regulations issued under the Securities Exchange Board of India Act, 1992 or the Companies (Share Capital and Debentures) Rules, 2014 notified by the Central Government under the Companies Act 2013, as the case may be.

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  • Jul
  • 16
  • 2015

Banks to maintain 3 year average of overall direct lending to non-corporate farmers

Added In RBI / FEMA
Banks are, therefore, directed to ensure that their overall direct lending to non-corporate farmers does not fall below the system-wide average of the last three years achievement ( to be notified shortly, and henceforth at the beginning of each year), failing which they will attract the usual penalties for shortfall. They should also continue to maintain all efforts to reach the level of 13.5 percent direct lending to the beneficiaries who earlier constituted the direct agriculture sector.

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  • Jul
  • 16
  • 2015

Restriction on investments with less than 3 years residual maturity not applicable to investment by FPIs in SRs issued by ARCs

Added In RBI / FEMA
The Reserve Bank has been receiving enquiries about the applicability of the aforesaid directions on investment by FPIs in security receipts (SRs) issued by the Asset Reconstruction Companies (ARCs). It is clarified that the restriction on investments with less than three years residual maturity shall not be applicable to investment by FPIs in SRs issued by ARCs. However, investment in SRs shall be within the overall limit prescribed for corporate debt from time to time.

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  • Jul
  • 14
  • 2015

Returns to be filed BY NBFC’s and Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFC’s

Added In RBI / FEMA
On 9th July 2015 RBI has issued two circular firstly DNBS (IT).CC.No.01/24.01.191/2015-16, Dated 9-7-2015 for returns to be submitted by NBFC’s (Assets size below Rs 500 Crore) and secondly DNBR (PD) CC.No. 065/03.10.001/2015-16, Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of Non-Banking Financial Companies (NBFCs).

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  • Jul
  • 10
  • 2015

Liaison / Branch / Project Offices of foreign entities in India – FAQs

Added In RBI / FEMA
Foreign companies/entities desirous of setting up of Liaison Office / Branch Office (LO/BO) are required to submit their application in Form FNC along with the documents mentioned therein to the General Manager, Foreign Exchange Department, Central Office Cell, Reserve Bank of India, New Delhi Regional Office, 6, Parliament Street, New Delhi-110 001, India through an Authorised Dealer bank. This form is available at www.rbi.org.in

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