Overseas Direct Investment by Registered Trust / Society - ஆர்பிஐ - Reserve Bank of India
Overseas Direct Investment by Registered Trust / Society
RBI/2007-08/ 387 June 27, 2008 To, All Category - I Authorised Dealer Banks Madam / Sir, Overseas Direct Investment by Registered Trust / Society Attention of Authorised Dealer Category - I (AD Category - I) Banks is invited to Notification No.FEMA120/RB-2004 dated 7th July 2004, as amended from time to time, in terms of which a company incorporated in India, or a body created under an Act of Parliament or a partnership firm registered under Indian Partnership Act, 1932, or any other entity as may be notified by the Reserve Bank is eligible to invest in a Joint Venture or Wholly Owned Subsidiary abroad. 2. With a view to further liberalising the policy on overseas investments, it has been decided, in consultation with the Government of India, to allow Registered Trusts and Societies engaged in manufacturing / educational sector to make investment in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank. Trusts / Societies satisfying the eligibility criteria as prescribed in the Annex, may submit the application/s in Form ODI-Part I, through their AD Category - I bank/s. The AD Category – I bank, after ensuring that the applicant satisfies the prescribed criteria, may forward the application/s with their comments / recommendations, to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Overseas Investment Division, Central Office, Amar Building, 5th Floor, Fort, Mumbai 400 001, for consideration. 3. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of any Foreign Security), Regulations, 2004 notified vide Notification No.FEMA120/RB-2004 dated 7th July 2004 are being issued separately. 4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned. Yours faithfully, [Annex to A. P. DIR (Series) Circular No. 53 dated June 27, 2008] Criteria for Overseas Investment by Registered Trust / Society Trust i) The Trust should be registered under the Indian Trust Act, 1882. Society i) The Society should be registered under the Societies Registration Act, 1860. In addition to the registration, the activities which require special license / permission either from the Ministry of Home Affairs, Government of India or from the relevant local authority, as the case may be, the Authorised Dealer Category – I bank should ensure that such special license / permission has been obtained by the applicant. |