FEMA - Corporate Law Reporter

Foreign Exchange Department of RBI, implements the Application Tracking System

The Application Tracking System (ATS) is a major e-Governance initiative of the Reserve Bank of India. Foreign Exchange Department, Central Office and its 17 Regional offices have since adopted the ATS, to facilitate the customers to apply and track the status of the applications online. Under the online Application Tracking System (ATS), customers can submit… Read More

Change in Master Circular on Non-Resident Ordinary Rupee (NRO) Account – 29th May, 2012

The Master Circular No.6/2011-12 on Non-Resident Ordinary Rupee (NRO) Account has been amended on 29th May, 2012 by addition of clause B (iv) (highlighted in red below) as Permissible debits. Permissible Debits (i) All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.… Read More

Online Reporting of Overseas Direct Investment in Form ODI

RBI/2011-2012/585 A.P. (DIR Series) Circular No.131 May 31, 2012 To All Category-I Authorised Dealer Banks Madam / Sir, Overseas Direct Investments by Indian Party- Online Reporting of Overseas Direct Investment in Form ODI Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No. 36 dated February… Read More

RBI – Uniformity in Risk weight for assets covering PPP and post COD projects

RBI/2011-12/581 DNBS.PD.CC.No.276/03.02.089/2011-12 May 30, 2012 All Infrastructure Finance Companies Uniformity in Risk weight for assets covering PPP and post COD projects The Reserve Bank, vide its notification No.DNBS.233/CGM(US)-2011 dated November 21, 2011 viz; Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011 issued detailed guidelines with regard to regulation of IDF-NBFCs.In terms of the Guidelines,for the purpose… Read More

Clarification on conversion of balances into INR in EEFC Accounts

RBI/2011-12/564 A.P. (DIR Series) Circular No. 128 May 16, 2012 To All Category - I Authorised Dealer Banks Madam / Sir, Exchange Earner™s Foreign Currency (EEFC) Account Attention of Authorised Dealer Category I (AD Category I) banks is invited to A.P. (DIR Series) Circular No. 124 dated May 10, 2012 on the captioned subject in terms of… Read More

Bank Finance to NBFCs Predominantly Engaged in lending against Gold

RBI/2011-12/568 DBOD.BP.BC.No. 106/21.04.172/2011-12 May 18, 2012 All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Bank Finance to NBFCs Predominantly Engaged in lending against Gold Please refer to paragraphs 94 to 96 (extract enclosed) of the Monetary Policy Statement 2012-13 announced on April 17, 2012 on ˜Bank Finance to NBFCs Predominantly Engaged in Lending against Gold™… Read More

Cross Border Investments – Regulatory & Tax Imperatives

I would like to take this opportunity to inform and invite you to our upcoming Business Program Cross Border Investments- Evolving Regulatory and Tax Imperatives with our Knowledge Partner Mohinder Puri & Co., Solicitors and Advocates, scheduled in New Delhi on 25th May at Hotel Crowne Plaza. This year marks the twenty first anniversary of the… Read More

Condition for NBFCs Opening their Susidiaries Abroad

Reserve Bank of India (RBI) has issued circulars under the Foreign Exchange Management Act, 1999 (FEMA) and also from regulatory perspective, advising the NBFCs to obtain its prior permission before opening branch/office/joint venture/subsidiary/representative office abroad. Broadly, the following conditions have been prescribed by RBI in this regard:- i) Investment in non-financial services sectors shall not… Read More

Amendments Proposed in Provisions Relating to General Anti-Avoidance Rules (GAAR)

The following government amendments have been proposed in the provisions relating to General Anti-Avoidance Rules (GAAR) contained in the Finance Bill 2012. i) To remove the onus of proof from the tax-payers to the Revenue Department before any action can be initiated under GAAR. ii) To introduce an independent member, not below the rank of… Read More

Concern of Credit Rating Agencies on Indian Economy

India™s sovereign debt is usually rated by six major Sovereign Credit Rating Agencies (SCRAs) viz. Moody™s Investor Services, Standard and Poor™s (S&P), Dominion Bond Rating Service (DBRS), Fitch Ratings, Japanese Credit Rating Agency (JCRA) and Rating and Investment Information (R&I). The assessment and ratings given by the various agencies differ from each other. In past… Read More

Foreign investment in NBFC Sector under the FDI Scheme – Clarification

RBI/2011-12/562 A.P. (DIR Series) Circular No. 127 May 15, 2012 To All Category - I Authorised Dealer Banks Madam / Sir, Foreign investment in NBFC Sector under the Foreign Direct Investment (FDI) Scheme - Clarification Attention of Authorised Dealers Category I (AD Category - I) banks is invited to A.P. (Dir Series) Circular No.121 dated May… Read More

Revised Kisan Credit Card (KCC) Scheme

RBI/2011-12/553 RPCD.FSD.BC.No. 77/05.05.09/2011-12 May 11, 2012 The Chairman and Managing Director/CEOs, All Scheduled Commercial Banks, (Excluding RRBs) Madam / Dear Sir, Revised Kisan Credit Card (KCC) Scheme Please refer to our circular RPCD.PLFS.BC.No.38/05.05.09/2004-05 dated October 4, 2004 advising you to implement the Revised Model KCC Scheme. 2. With a view to simplify and attune the Scheme to… Read More

Guidelines for clearing of cheques where there is no formal clearing house

RBI/2011-12/559 DPSS.CO.CHD No./2073/03.02.01/2011-12 May 11, 2012 The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks/Local Area Banks Dear Sir/Madam Guidelines for clearing of cheques where there is no formal clearing house As you may be aware,… Read More