A.P. (DIR Series) Circular No.51/2002-RB, Dt. 24/06/2002

Indian Direct Investment in Joint Ventures (JV)/Wholly Owned Subsidiaries (WOS) outside India

To

All Authorised Dealers in Foreign Exchange

Madam/Sirs,

Attention of authorised dealers is invited to Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000 notified by the Reserve Bank vide Notification No.FEMA.19/RB-2000 dated May 3, 2000, as amended from time to time.

2. In terms of A.P. (DIR Series) Circular No.3 dated June 22, 2000 as amended by A.P. (DIR Series) Circular No.13 dated September 14, 2000, in case of investments made under the automatic route for overseas direct investment, authorised dealers are required to forward to the Reserve Bank, form ODA alongwith the prescribed documents and a report on remittance in form ODR. Remittances made under an approval of the Reserve Bank are only required to be reported in form ODR.

3. With a view to further streamlining the procedure for reporting overseas direct investments in JV/WOS, it has been decided to dispense with the requirement of forwarding of form ODA alongwith the prescribed documents to Reserve Bank for investments made under the automatic route by Indian parties.

4. The report on remittances required to be submitted by authorised dealers has also been revised. All remittances/guarantees issued/capitalisation of exports etc., irrespective of whether under the automatic route or under Reserve Bank approval, are henceforth required to be reported in the revised form ODR (format enclosed), to the Chief General Manager, Reserve Bank of India, Exchange Control Department, Overseas Investment Division, Amar Building, 3rd Floor, Mumbai-400 001. There will be no change in the procedures relating to the receipt/scrutiny of the form ODA submitted by the Indian parties to the authorised dealer. Accordingly A.P. (DIR Series) Circular No.3, ibid, stands modified to that extent.

5. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations 2000 are being notified separately.

6. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

7. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,
Grace Koshie
Chief General Manager

ODR

Report on Remittances for Overseas Direct Investment by Authorised Dealers

All amounts in Foreign Currency(FCY) and Indian Rupees (INR) should be in thousand only.

For use by RBI only

Date of Receipt

Inward No.

Identification No.

Name and address of : ___________________________________________________ the authorised dealer  ___________________________________________________       ___________________________________________________ Telephone No. : _____________________ FAX No.         : _____________________ e-mail            : _____________________ A.D. Code       : _____________________.

If the investment is in the existing JV/WOS, please indicate Identification/Approval No. already allotted :

No.

I. GENERAL

Nature and category of the investment [Please tick (ü) the appropriate box] :
A. Fresh Proposal		B. Supplementary Proposal
(i) Participation in JV abroad		(i) Enhancement of equity in existing JV/WOS abroad
(ii) Contribution in WOS		(ii) Grant/enhancement of loan in existing JV/WOS
(iii) Full/partial* takeover of an existing foreign concern		(iii) Extension/enhancement of guarantee
(iv) Acquisition of a company overseas through bidding or tender procedure		(iv) Others (Please specify)

(* Strike out whichever is not applicable)

II. PARTICULARS OF INDIAN PARTY

(a) Name and Address of the _______________________________________________ Indian party _______________________________________________                  _______________________________________________ Telephone No. : _____________________ FAX No.         : _____________________ e-mail           : _____________________
(b) Status*
(c) Name of the Industrial House/Group to which the Indian party belongs
(d) (i) Existing line of activity of the Indian party (Please tick the appropriate box)		(ii) Brief particulars of the products manufactured/goods traded/services rendered
Manufacturing Trading Financial Services Non-Financial Services Others (please specify)
(e) Years of experience in the existing line of activity :

*	(a) Public Ltd. Company (1),	(b) Private Ltd. Company (2)
	(c) Public Sector Undertaking (3), (Please specify)	(d) Others (4)

III. PARTICULARS OF THE FOREIGN PARTNER/CONCERN(in case of JV)

(a) Details of the foreign partner/concern Name     : ____________________________________________________ Address : ____________________________________________________              ____________________________________________________ Telephone No. : ________________________________ FAX No.         : ________________________________ e-mail           : ________________________________

(b) Years of experience in the proposed field of collaboration :

IV. PARTICULARS OF JV/WOS

(i) Name and Address of the _______________________________________________ JV/WOS _______________________________________________ _______________________________________________ Telephone No. : _____________________ FAX No. : _____________________ e-mail : _____________________
(ii) Country of location:
(iii)Line of activity of the JV/WOS (Please tick the appropriate box)		(iv) Brief particulars of the products manufactured/ goods traded/services rendered
(a) Manufacturing (b) Trading (c) Financial Services (d) Non-financial Services (e) Others ( Please specify)
(v) Percentage holding by Indian Party (in case of JV) :		Percentage holding by foreign partner (in case of JV) :
(vi) Time-frame for implementation of the project :
(vii) Accounting year followed in the host country :

V. PROFITABILITY PROJECTIONS OF THE OVERESEAS JV/WOS

(Amount in FCY)**                   

Years of Operation
	1	2	3	4	5	Total
(a) Gross sales/turnover
(b) Net Profit(Loss)
(c) Dividend
(d) Net worth

VI. PROJECTED REPATRIABLE ENTITLEMENTS

(Amount in FCY)**                   

Years of Operation
	1	2	3	4	5	Total
(a) Dividend
(b) Others (Please specify)

VII. PROJECTED NON-EQUITY EXPORTS

(Amount in INR)                   

Years of Operation
	1	2	3	4	5	Total
FOB Value

VIII. DETAILS OF REMITTANCES EFFECTED

Investments under Automatic Route/approval issued by Reserve Bank (Strike out whichever is not applicable)
Currency**
Amount of the proposed investment :
Equity	Loan	Guarantee(Invoked)	Date of Remittance
Details of actual remittance effected :
(a) From EEFC A/c.
Equity	Loan	Guarantee(Invoked)	Date of Remittance
(b) By Market Purchases
Equity	Loan	Guarantee(Invoked)	Date of Remittance
(c) From the ADR/GDR funds parked in India/outside India (Strike out whichever is not applicable)
Equity	Loan	Guarantee(Invoked)	Date of Remittance
(d) Capitalisation of Exports/Other dues @
Date of capitalization:		Amount:
(e) Guarantee issued:		Amount:

@ Please specify the other dues being capitalised viz., royalty, technical know-how fee, consultancy fees, etc.

** Please indicate name of the foreign currency(FCY) as per SWIFT code.

We hereby confirm that the remittance* has been allowed under the Automatic Route based on the certification given by the statutory auditors (in form ODA) confirming compliance with the prescribed terms and conditions by the Indian party/*is in accordance with the terms and conditions of the approval letter issued by the Reserve Bank./*in respect of the invoked guarantee has been made after satisfying that the claim is in conformity with the terms and conditions of the guarantee issued to/on behalf of the JV/WOS abroad.

* strike out whichever is not applicable

Place _________________ Date __________________	Stamp/Seal	____________________________ Signature of the Authorised Official of the Bank Name : ____________________ Designation : __________________ Tel.No. : __________________ FAX No. : __________________

Note :

This form should be forwarded to the Overseas Investment Division, Central Office, Exchange Control Department, Reserve Bank of India, Amar Building(Third Floor), Fort, Mumbai 400 001 immediately after making the remittance/capitalisation of exports, other dues, etc.

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