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Our Banking Bureau
Mumbai, Nov 12: The Reserve Bank of India has made it mandatory for Indian companies to report receipt of foreign remittances under foreign direct investment (FDI) within 30 days of the receipt of funds. This will involve amendment to the central bank notification of January 13 and February 10, 1998, which were issued as part of its effort to simplify the FDI procedures. The change has been made in order to facilitate better monitoring and compilation of FDI data.
The new requirement is in addition to the submission of prescribed documents within 30 days from the date of issue of shares. "Accordingly, Indian companies receiving funds from their foreign investors in accordance with the general permission, should immediately report (in any case, not later than 30 days from the date of receipt of remittance) by a letter to the regional office of the Reserve Bank having jurisdiction over the company," said an RBI press release.
The RBI has also extended the general permission granted for issue of equityshares to issue of preference shares to foreign investors under the `automatic route of RBI' as also for non-resident Indians/overseas corporate bodies under 100 per cent scheme. Apart from this, the issue of equity up to 100 per cent in respect of items (generation and transmission of electric energy through hydro/thermal power plants) included in the Part `D' of Industry ministry's annexure-111 list is also included into the general permission list.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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