FEMA - Corporate Law Reporter

Obligation of banks while carrying out Due Diligence measures

RBI/2014-15/212 DBOD.AML.BC.No. 39/14.01.001/2014-15 September 4, 2014 The Chairperson/Chief Executive Officers All Scheduled Commercial Banks (excluding RRBs) / All India Financial Institutions/ Local Area Banks Dear Madam/Sir, Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 Obligation of banks Client… Read More

External Commercial Borrowings (ECB) in Indian Rupees

RBI/2014-15/206 A.P. (DIR Series) Circular No.25 September 3, 2014 To All Category - I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) in Indian Rupees Attention of Authorised Dealer Category I (AD Category I) banks is invited to Regulation 6 of Notification No. FEMA.3/2000-RB dated May 03, 2000 in terms of which persons… Read More

Purchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India

RBI/2014-15/197 A.P. (DIR Series) Circular No.22 August 28, 2014 To All Category I Authorised Dealer Banks Madam/ Sir, Purchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign… Read More

Raised FDI limit changes from 26% to 49% gets notified by DIPP

The Department of Industrial Policy and Promotion (DIPP) has notified changes to the foreign direct investment policy for defence approved by the Government earlier. The foreign direct investment limit has been raised from 26% to 49% but over and above this increased percentage government approval shall be mandatory. Further, it is a composite limit and… Read More

NBFC’s – Lending against shares

RBI/2014-15/186 DNBS (PD).CC.No. 408 /03.10.001/2014-15 August 21, 2014 All NBFCs with asset size of `.100 cr and above (excluding Primary Dealers) Dear Sirs, NBFCs- Lending against Shares 1.At present, lending against shares carried out by NBFCs is not subject to specific instructions apart from the general prudential regulation applicable to all NBFCs. Lending against shares could… Read More

FDI rules for Multi-brand Retail to apply to e-commerce

The Commerce minister Nirmala Sitharaman has released that FDI rules for multi brand retail shall now apply to e-commerce. The Enforcement Directorate was closely scanning the capital structures of various companies operating in e-commerce when this amendment came up.Few days back the enforcement directorate has tapped a big e-commerce player in the retail market in… Read More

Liberalised Remittance Scheme for resident individuals-clarification

RBI/2014-15/171 A. P. (DIR Series) Circular No. 19 August 11, 2014 To All Category - I Authorised Dealer Banks Madam / Sir, Liberalised Remittance Scheme for resident individuals-clarification Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 5 dated July 17, 2014, in terms of which it was… Read More

RBI all set for the Statutory liquidity ratio (SLR) cut for future planning

Reserve Bank of India has lowered statutory liquidity ratio (SLR) by 50 basis points and told banks to prepare themselves for higher credit growth when the economy picks up. Governor Raghuram Rajan said that the reduction in SLR might not spur credit growth immediately but it would enable banks to meet credit demand whenever necessary.… Read More

RBI may focus on easing fund flow and cut down rates

The Reserve Bank of India is unlikely to cut rates at its August 5, 2014 monetary policy announcement, but may prepare ground for an easier rate regime by introducing some liquidity measures. Meanwhile, indicators of an imminent revival in growth will take the pressure off the central bank as it focuses on its anti-inflation campaign.… Read More

Cost ceiling w.r.t. trade credits for Imports into India to apply till 31st Dec.2014

RBI/2014-15/152 A.P. (DIR Series) Circular No.16 July 28, 2014 To, All Category - I Authorized Dealer Banks Madam / Sir, Trade Credits for Imports into India ” Review of all-in-cost ceiling Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 122 dated April 10, 2014 relating to the all-in-cost ceiling… Read More

Cost ceiling specified in ECB policy to apply till 31st December, 2014

RBI/2014-15/153 A.P. (DIR Series) Circular No.17 July 28, 2014 To, All Category - I Authorized Dealer Banks Madam / Sir, External Commercial Borrowing (ECB) Policy ” Review of all-in-cost ceiling Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 121 dated April 10, 2014 relating to the all-in-cost ceiling for… Read More

Foreign Investment in India by SEBI registered long term investors in Government Dated Securities

RBI/2014-15/145 A. P. (DIR Series) Circular No. 13 July 23, 2014 To, All Authorised Persons Madam/ Sir, Foreign investment in India by SEBI registered Long term investors in Government dated Securities Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by… Read More

Revised Pricing Guidelines w.r.t. FDI in Issue/Transfer of shares or convertible debentures

RBI/2014-15/129 A. P. (DIR Series) Circular No. 4 July 15, 2014 To, All Category I Authorised Dealer Banks Madam/Sir, Foreign Direct Investment (FDI) in India - Issue/Transfer of Shares or Convertible Debentures - Revised pricing guidelines Attention of Authorized Dealers Category I (AD Category - I) banks is invited to Regulation 10(A)(b)(i), para 5 of… Read More