Application for permission under Section 29 of Foreign Exchange Regulation Act 1973 to purchase shares in India of any company carrying on trade commerce or industry

 

Instruction:

 

1.

The application should be completed in duplicate and submitted to the Chief General Manager, Exchange Control Department (Foreign Investment Division), Reserve Bank of India, Central Office, Mumbai - 400 001. However, applications for purchase of shares on non-repatriation basis by non-residents of Indian nationality/origin (NRIs) or overseas corporate bodies owned to the extent of at least 60% by such persons (OCBs) or by foreign nationals of Indian origin resident in India should be submitted in duplicate to the concerned office of Reserve Bank within whose jurisdiction the Registered/Head Office of the investee company is situate.

 

Documentation:

 

Please submit the following documents in triplicate:

 

2.

Balance Sheets and Profit and Loss Accounts statements for the preceding three years, if the applicant is a company already functioning in India.

 

 

3.

Balance Sheets and Profit and Loss Account statements for the preceding three years of the company whose shares are proposed to be purchased.

 

 

4.

An Auditors certificate showing the fair valuation of shares to be purchased.

 

 

5.

Certified copies of sale deed/agreement for sale in respect of purchase of shares by private arrangements.

 

 

6.

A non-repatriation undertaking in the prescribed form, where applicable.

 

 

7.

In case the proposed investment is to be made by an OCB under Non-resident Indian Investment Scheme a certificate in original of a recent date in form OAC/OAC 1 from an overseas auditor/chartered accountant/certified public accountant.

 

 

1.

(a)

Full name and address of the applicant

(a)

 

 

(b)

Nationality (if the applicant is an individual)

(b)

 

 

(c)

Place of incorporation (if the applicant is a company)

(c)

 

 

(d)

Nature of business or manufacturing activity in India of the applicant

(d)

 

2.

(A)

If the applicant is a person resident outside India, please state whether -

 

 

 

 

(a)

Citizen of India

(a)

 

 

 

(b)

Not a citizen of India

(b)

 

 

(B)

If the applicant is a foreign citizen residing in India, please state -

 

 

 

 

(a)

Country of birth

(a)

 

 

 

(b)

Date of birth

(b)

 

 

 

(c)

Since when staying in India and

(c)

 

 

 

 

probable duration of further stay in India.

 

 

 

 

(d)

Purpose of stay in India

(d)

 

 

 

(e)

Particulars of Reserve Banks

(e)

 

 

 

 

approval obtained (if any) under Section 30 of F.E.R.Act, 1973 for practising any profession or carrying on any occupation, trade or business in India.

 

 

 

 

(f)

Whether enjoying any recurring

(f)

 

 

 

 

remittance facilities; if so, details thereof

 

 

 

 

(g)

whether he is a person of Indian origin

(g)

 

3.

If the applicant is a company, please furnish the following particulars/documents

 

 

 

(A)

 

Authorised capital

 

 

 

 

 

(a)

Equity

(a)

 

Rs......divided into...... shares of Rs......each

 

 

 

(b)

Preference

(a)

 

Rs......divided into...... shares of Rs......each

 

(B)

 

Paid-up capital

 

 

 

 

 

(a)

Equity

 

 

Rs......divided into...... shares of Rs......each

 

 

 

(b)

Preference

 

 

Rs......divided into...... shares of Rs......each

 

(C)

 

Held by

Equity

Preference

 

 

 

 

No.of shares

Face Value

%

No.of shares

Face Value

%

 

 

 

(I)

Non-resident

 

 

 

 

 

 

(a)

Corporate Bodies

 

 

 

 

 

 

 

(i)

Firms, companies and institutions/bodies other than those included in (ii) below

 

 

 

 

 

 

 

(ii)

Firms, companies and other bodies directly or indirectly owned to the extent of atleast 60% by non-residents of Indian nationality/ origin

 

 

 

 

 

 

 

 

(a)

with repatriation benefits

 

 

 

 

 

 

 

 

(b)

without repatriation benefits

 

 

 

 

 

 

(b)

Individuals

 

 

 

 

 

 

 

(i)

Indian nationals and persons of Indian origin

 

 

 

 

 

 

 

 

(a)

with repatriation benefits

 

 

 

 

 

 

 

 

(b)

without repatriation benefits

 

 

 

 

 

 

 

(ii)

Others

 

 

 

 

 

(II)

Resident

 

 

 

 

 

 

(a)

Firms, companies and other insitutions/bodies

 

 

 

 

 

 

(b)

Individuals

 

 

 

 

 

 

 

(i)

Indian nationals

 

 

 

 

 

 

 

(ii)

Other than Indian nationals

 

 

 

 

 

 

 

 

Total :

 

 

 

4.

Particulars of the company whose shares are proposed to be purchased

 

 

 

 

 

 

 

 

(a)

Name, address and place of its incorporation

(a)

 

 

(b)

Nature of its business or manufacturing activity

(b)

 

 

(c)

Whether the activity is covered by Annexure III to Industrial Policy Statement dated 24th July 1991

(c)

 

5.

Particulars of the shares to be purchased

 

 

 

(a)

Equity shares

(a)

 

 

 

(i)

Total number

 

(i)

 

 

 

(ii)

Total face value

 

(ii)

 

 

 

(iii)

Percentage of total equity shares of the company

 

(iii)

 

 

(b)

Preference shares

 

(b)

 

 

(i)

Total number

 

(i)

 

 

 

(ii)

Total face value

 

(ii)

 

 

 

(iii)

Percentage of total equity shares of the company

 

(iii)

 

 

(c)

Whether the shares are quoted on a recognised stock exchange in India; if so, give the current quotation.

(c)

 

6.

How the shares are proposed to be purchased i.e., whether through a recognised stock exchange or by private arrangement with the seller. In the latter case, please furnish the following:

 

 

 

 

 

 

 

 

(a)

Name and address of the seller

(a)

 

 

(b)

The price or consideration money to be paid

(b)

 

7.

Source of funds from which payment for the shares to be purchased will be made

 

 

8.

Whether apart from the shares proposed to be purchased (vide item 5 above) the applicant already holds any shares of the same company; if so, state

 

 

 

(a)

Total number and face value of the shares (Details of equity and preference shares to be given separately as required under item above)

(a)

 

 

(b)

Percentage of total capital (equity and preference to be indicated separately) of the company

(b)

 

 

(c)

The date when the shares were acquired

(c)

 

 

(d)

Number and date of the Reserve Banks approval obtained (if any) for acquiring/holding the shares

(d)

 

9.

Any other information which the applicant wishes to furnish in support of the application.

 

 

 

 

I/We hereby declare that the particulars given above are true and correct to the best of

my/our knowledge and belief.

 

.......................................................................

(Signature of Applicant/Authorised Official)

Place:..........

Stamp

Name:.............................................................

Date:...........

Designation:...................................................