(i) Where the approval granted by Reserve Bank for setting up of JV/WOS abroad provides for equity contribution by way of cash remittance the Indian promoters should apply for release of exchange to the concerned Regional office of Reserve Bank through their bankers in form A 2. In case, however, the remittance is to be effected out of the funds held in their EEFC account, prior permission from Reserve Bank will not be necessary. After effecting the remittance, the particulars thereof, along with the certificate of the authorised dealer concerned, should be reported by the Indian company to the concerned Regional Office of Reserve Bank within 15 days from the date of such remittance.

(ii) Similarly in cases where the approval granted provides for grant of loan by the Indian promoters to overseas JV/WOS, the aforesaid procedure should be followed and the particulars of remittances made should be reported by the Indian company to the concerned Regional Office of Reserve Bank within 15 days from the date of remittance. Where issue of guarantee by the Indian promoters has been specifically approved by Reserve Bank, a certified copy of such guarantee, as and when issued, should be submitted to the concerned Regional Office of Reserve Bank within 15 days from the date of issue of such guarantee to/on behalf of the overseas concern. In the event of such guarantee being invoked, the Indian promoters should approach the concerned Regional office of Reserve Bank through the concerned authorised dealer for permission to effect the remittance towards the invoked guarantee. After effecting the remittance, the particulars thereof should be reported to Reserve Bank by the Indian promoters as in the case of remittances made for equity and for loan.

Note: For subscription to shares of overseas joint ventures/wholly owned subsidiaries by employees of Indian promoter company in the field of software refer to paragraph 12.7A.