(i) NRIs/OCBs are permitted to set up Indian companies with 100 per cent equity participation for carrying on Air Taxi Operations in terms of the guidelines issued by the Director General of Civil Aviation for Air Taxi Operations.

(ii) Reserve Bank, vide its Notification No.F.E.R.A.197/99-RB dated 30th March 1999, has granted general permission under Sections 19(1)(d), 19(1)(a) and 29(1)(b) of the Foreign Exchange Regulation Act, 1973 to Indian companies to issue and export shares/convertible debentures to NRI/OCB investors upto 100 per cent of paid-up capital as also to NRI/OCB investors to acquire shares/convertible debentures of the Indian companies. As a result of the general permission, Indian companies seeking investment from NRI/OCB investors under the scheme may issue shares/convertible debentures subject to the following conditions:-

i) the company concerned should comply with the conditions stipulated by the Director General of Civil Aviation or the competent authority concerned in the letter of approval issued to the company for carrying on Air Taxi operations in India ;

ii) in the case of issue of shares by an existing listed company the price of the issue is worked out according to SEBI guidelines and is duly certified by the companys statutory auditors and in the case of any other company, calculation of fair value of shares (as per erstwhile CCI guidelines) is made by an independent Chartered Accountant ;

iii) payment for the shares issued to NRIs/PIOs/OCBs is received by remittance from abroad through normal banking channels or out of funds held in the investors NRE/FCNR account maintained with an authorised dealer in India ;

iv) the company should submit to Reserve Bank, not later than 30 days from the date of receipt of remittance, a report containing the following :
a) Name of the investor;
b) Country of residence;
c) Date of receipt of remittance;
d) Name and address of the authorised dealer in India through whom the remittance is received;

v) the company issuing the shares should submit a report to Reserve Bank in form ISD(R), not later than 30 days from the date of issue, together with the documents specified in the Notification referred to above.