1. Issuance of shares against import of capital goods/ machinery now excludes second hand machinery (January 10)
  2. Issuance of shares against pre-incorporation/ pre-operative expenses covers payment directly made to the Indian company as well as expenses incurred through the bank account opened by the foreign investor under FEMA (May 17)
  3. No double reporting of investments by FVCI – reporting either under FC-GPR/FC-TRS or through custodian bank (June 12)

Downstream investments

  1. Guidelines issued under Press Notes 2,3,4 of 2009 now notified under the FDI  Regulations (Regulation 14) with retrospective effect from February 13, 2009 [AP DIR Circular dated July 4, 2013 read with Notification dated June 7, 2013]
  2. Investments before February 13, 2009 grandfathered
  3. All investments between February 13, 2009 and June 7, 2013 to be intimated to RBI within 90 days starting from July 4, 2013
  4. RBI shall consider treating any non-conformity with Notification dated June 7, 2013 as compliant with the present regulations
  5. Banking companies: Distinction between strategic investments and investments on account of CDR/ defaults in loan / any other loan restructuring mechanism
  6. Usage of internal accruals – not permitted under Notification dated June 7, 2013 unless the company was an investing company. Position now clarified under Notification dated August 27, 2013.
  7. Burden of compliance with downstream investment norms caps/ conditions on the first level Indian company (i.e., company that has received FDI directly) 
  8. Compliance certificate to be obtained from the statutory auditor on an annual basis (compliance with FEMA and norms on downstream investment)
  9. Statutory auditor certificate details to be mentioned in the director’s report section of the annual report
  10. Any qualifications by statutory auditor to be brought to the notice of the RBI immediately by the Indian company

Posted 3 years, 10 months ago by HS VEDANTA DESHIKA

In over a decade of drafting wills and trust, I have noticed that many people do their downstream planning but forget to do upstream planning.

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Posted 3 years, 3 months ago by daltonsalford Dhaka

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