Corporate Professionals Blog

A. Rollover of Guarantee given to JV/WOS incorporated outside India  Reserve Bank of India, vide A. P (DIR Series) Circular No. 83 dated 3rd January, 2014 has amended the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to time and has decided to not consider the renewal/rollover of an existing/original guarantee as a fresh financial commitment. Therefore, roll-over of the guarantee shall not be required to be reported as a fresh guarantee.  Mr. Abhishek Bansal Sr. Associate +919873191956 abhishek@indiacp.com For rollover of the existing guarantee shall be subject to the fulfillment of the following conditions:

Considering the present economic scenario and downsizing the value of the Rupee against internationally recognized currencies, the Reserve Bank of India has come out with some measures to rationalize the regulations governing the ' Overseas Direct Investment ' and ' Liberalized Remittance Scheme for Resident Individuals ' with immediate effect vide circular no. 23 and 24 dated 14th August, 2013. 1. Overseas Direct Investments (Circular No. 23) Mr. Abhishek Bansal Sr. Associate +919873191956 abhishek@indiacp.com As per the extant provisions of FEMA 1999 on overseas direct investments, an Indian Party is allowed to invest overseas in all its Joint Ventures (JVs) and/ or Wholly Owned Subsidiaries (WOSs) abroad engaged in bonafide business activity to the extent of 400% of its net worth as on the date of the last audited balance sheet under the Automatic Route.

AMENDMENT INTO THE REALIZATION PERIOD OF EXPORT PROCEEDS Those companies who are engaged in the business of export of goods and software are required to realize and repatriate to India the proceeds of export in freely convertible foreign currency within such period and in such manner as may be specified by RBI under Section 8, subsection (6) of Section 10, clause (c) of subsection (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999). Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com The period of realization and repatriation to India, for the full value of goods or software exported is twelve months from the date of export which was extended period from original period of six months and was valid till March 31, 2013.