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Knowledge Center » Business » LIST OF COMPLIANCES REQUIRED IN CASE OF INBOUND AND OUTBOUND INVESTMENTS IN INDIA :

LIST OF COMPLIANCES REQUIRED IN CASE OF INBOUND AND OUTBOUND INVESTMENTS IN INDIA :
I. In case of Inbound Investment:
1.  Intimation to the RBI for funds receipt in India in terms of para 9(1)(a) of FDI regulations, within 30 days of the remittance along with the copies of the Foreign Inward Remittance Certificate obtained from the receiving banker in respect of the funds received and Know Your Client (KYC) Certificate;
2.   Allotment of shares to Non Resident parent company within six months of receipt of funds;
3.   Filing particulars to RBI of the allotments of equity shares of the company as per form FCGPR within 30 days of allotment of shares,
       along with :
 •    the share valuation report by Chartered Accountant/Category 1 Merchant Banker (As per DCF method)* and
 •    a compliance certificate from the Company Secretary      
4.   Filing of Annual Return on Foreign Assets and Liabilities in terms of A.P. (DIR Series) Circular No.45 dated March 15, 2011 
       by 15th July of every year.    
*The revised guidelines for valuation of shares as prescribed in terms of RBI A.P. (DIR Series) Circular No. 49 dated May 04. 2010, issue price of shares issued to Non Resident Investor shall not be less than the fair valuation of shares by a Chartered Accountant or Category 1 Merchant Banker as per Discounted Cash Flow (DCF)method.   
 
II. In case of Outbound Investment:
1.   Submission of Part I of Form ODI in terms of Regulation 6 Notification FEMA No.120/RB-2004 dated July 7, 2004, within 30 days from the date of transaction along with a certificate from the Statutory Auditor      
2.  Share Valuation Report from a Category I Merchant Banker / Chartered Accountant in case of full / partial acquisition of an existing foreign company, where is investment is more than USD 5 million      
3.  Submission of Annual Performance Report in Part III of form ODI, within 60 days from the expiry of the statutory period as prescribed by the respective laws of the host country for finalization of the audited accounts of JV/WOS