{"id":13172,"date":"2021-06-29T23:18:56","date_gmt":"2021-06-29T17:48:56","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=13172"},"modified":"2022-02-04T01:48:52","modified_gmt":"2022-02-03T20:18:52","slug":"overseas-direct-investment-without-remittance-of-funds-from-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/","title":{"rendered":"Overseas Direct Investment Without Remittance from India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7cf57d910b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7cf57d910b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#Overseas_Direct_Investment_Without_Remittance_of_Funds_From_India\" title=\"Overseas Direct Investment Without Remittance of Funds From India\">Overseas Direct Investment Without Remittance of Funds From India<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#Forms_of_Entity_that_An_Indian_party_can_form_for_Overseas_Direct_Investment_%E2%80%93\" title=\"Forms of Entity that An Indian party can form for Overseas Direct Investment: &#8211;\">Forms of Entity that An Indian party can form for Overseas Direct Investment: &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#SOURCES_OF_FUNDS\" title=\"SOURCES OF FUNDS \">SOURCES OF FUNDS <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#TRANSFER_BY_WAY_OF_SALE_OF_SHARES_OF_JV_WOS_OUTSIDE_INDIA\" title=\"TRANSFER BY WAY OF SALE OF SHARES OF JV\/ WOS OUTSIDE INDIA\">TRANSFER BY WAY OF SALE OF SHARES OF JV\/ WOS OUTSIDE INDIA<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#Any_share_or_security_held_by_it_in_a_very_JV_WOS_outside_India_subject_to_the_following_conditions\" title=\"Any share or security held by it in a very JV\/ WOS outside India subject to the following conditions:\">Any share or security held by it in a very JV\/ WOS outside India subject to the following conditions:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#RESTRICTIONS_ON_FORMING_STEP_DOWN_SUBSIDIARY_SDS_COMPANY\" title=\"RESTRICTIONS ON FORMING STEP DOWN SUBSIDIARY (SDS) COMPANY\">RESTRICTIONS ON FORMING STEP DOWN SUBSIDIARY (SDS) COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#REPORTING_COMPLIANCES_AND_OBLIGATIONS_OF_INDIAN_PARTY_MAKING_ODI\" title=\"REPORTING COMPLIANCES AND OBLIGATIONS OF INDIAN PARTY MAKING ODI\">REPORTING COMPLIANCES AND OBLIGATIONS OF INDIAN PARTY MAKING ODI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#INVESTMENT_IN_FOREIGN_SECURITIES_ASIDE_FROM_BY_WAY_OF_DIRECT_INVESTMENT\" title=\"INVESTMENT IN FOREIGN SECURITIES ASIDE FROM BY WAY OF DIRECT INVESTMENT \n\">INVESTMENT IN FOREIGN SECURITIES ASIDE FROM BY WAY OF DIRECT INVESTMENT \n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/overseas-direct-investment-without-remittance-of-funds-from-india\/#COMPLIANCE_REQUIREMENTS_WHEN_SHARES_ARE_ACQUIRED_WITHOUT_CONSIDERATION\" title=\"COMPLIANCE REQUIREMENTS WHEN SHARES ARE ACQUIRED WITHOUT CONSIDERATION\">COMPLIANCE REQUIREMENTS WHEN SHARES ARE ACQUIRED WITHOUT CONSIDERATION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/OVERSEAS-DIRECT-INVESTMENT-WITHOUT-REMITTANCE-OF-FUNDS-FROM-INDIA..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13173\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/OVERSEAS-DIRECT-INVESTMENT-WITHOUT-REMITTANCE-OF-FUNDS-FROM-INDIA..jpg\" alt=\"OVERSEAS DIRECT INVESTMENT WITHOUT REMITTANCE OF FUNDS FROM INDIA.\" width=\"956\" height=\"458\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/OVERSEAS-DIRECT-INVESTMENT-WITHOUT-REMITTANCE-OF-FUNDS-FROM-INDIA..jpg 653w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/OVERSEAS-DIRECT-INVESTMENT-WITHOUT-REMITTANCE-OF-FUNDS-FROM-INDIA.-300x144.jpg 300w\" sizes=\"(max-width: 956px) 100vw, 956px\" \/><\/a><\/p>\n<h1><span class=\"ez-toc-section\" id=\"Overseas_Direct_Investment_Without_Remittance_of_Funds_From_India\"><\/span><span style=\"color: #ff0000;\">Overseas Direct Investment Without Remittance of Funds From India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>An investment outside India\u00a0will be\u00a0done by an Indian party or\u00a0a private\u00a0or (single or in association with another resident individual or with an \u2018Indian Party\u2019).<\/p>\n<p>All<a href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax-and-fema\/\"> resident<\/a> individuals, including minors, are allowed to freely remit up to USD 250,000 per\u00a0yr.<\/p>\n<p>An Indian Party is allowed to make overseas direct investment in any of the prescribed bonafide activities. However, reality and banking business are the prohibited sectors for overseas direct investment.<\/p>\n<p>But Indian banks operating in India can found JVs\/WOSs abroad provided they obtain clearance under the Banking Regulation Act, 1949, from the Department of Banking Regulation (DBR) and RBI.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13175\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/11.jpg\" alt=\"\" width=\"945\" height=\"293\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/11.jpg 600w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/11-300x93.jpg 300w\" sizes=\"(max-width: 945px) 100vw, 945px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Forms_of_Entity_that_An_Indian_party_can_form_for_Overseas_Direct_Investment_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>Forms of Entity that An Indian party can form for Overseas Direct Investment: &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/12.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13178\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/12.png\" alt=\"\" width=\"953\" height=\"502\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/12.png 600w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/12-300x158.png 300w\" sizes=\"(max-width: 953px) 100vw, 953px\" \/><\/a><\/p>\n<p>\u2666 In both the cases, an Indian Party should approach a licensed Dealer Category \u2013 I Bank (hereafter, referred to as \u201cAD bank\u201d) with an application in Form ODI Part-I together with the prescribed enclosures\/documents.<\/p>\n<p>\u2666The AD bank should report the relevant Form ODI\u00a0within the\u00a0online OID application\u00a0and procure\u00a0UIN while executing the remittance and intimate to the Remitter which shall be\u00a0employed by\u00a0him\u00a0all told\u00a0the longer-term\u00a0communication made with <a href=\"https:\/\/carajput.com\/blog\/tag\/rbi\/\">RBI<\/a>.<\/p>\n<table style=\"height: 1129px;\" width=\"916\">\n<tbody>\n<tr>\n<td width=\"355\"><span style=\"color: #000080;\"><strong>AUTOMATIC ROUTE<\/strong><\/span><\/td>\n<td width=\"355\"><span style=\"color: #000080;\"><strong>APPROVAL ROUTE<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"355\">No requirement for obtaining prior approval of RBI is required, where an Indian party make ODI in <strong>equity shares and in compulsorily convertible preference shares,<\/strong> subject to the following conditions:<\/p>\n<ol>\n<li>The was should be engaged in bonafide business activity.<\/li>\n<li>Total financial commitment of the indian party in all was should not exceed 400 % of the net worth of the indian party as of the date of the last audited balance sheet.However, in case the financial commitment exceeding USD $ 1 billion in a financial year, the same would require prior approval of RBI.\n<ol start=\"3\">\n<li>The indian party should not be on the reserve bank of india\u2019s exporters\u2019 caution list \/ list of defaulters.<\/li>\n<li>An indian party may extend a loan or a guarantee to or on behalf of the JV\/WOS abroad only if there is already\u00a0<strong>existing equity participation\u00a0<\/strong>by way of direct investment in such an overseas entity.<\/li>\n<li>If there is no equity holding of the indian party, then a loan and guarantee can be granted by way of rbi approval.<\/li>\n<li>The valuation of shares of the company outside india shall be made by a chartered accountant or a certified public accountant.<\/li>\n<li>However, if the amount is more than USD 5 million, the valuation of the shares shall be made by a category i merchant banker registered in\/outside india.<\/li>\n<li>Indian party routes all the transactions relating to the investment in a JV\/wos <strong>through only one branch of an authorised dealer(ad) to be designated by the indian party.<\/strong><\/li>\n<\/ol>\n<p>Where the conditions prescribed under the <strong>automatic route are <\/strong>not fulfilled, the<\/li>\n<\/ol>\n<p>&nbsp;<\/td>\n<td width=\"355\">jv\/wos INDIAN PARTY <strong>I<\/strong>S REQUIRED TO<strong> SEEK PRIOR APPROVAL OF RBI BEFORE MAKING SUCH AN INVESTMENT<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>THE APPROVAL SHALL BE MADE, BASED ON THE FOLLOWING FACTORS &#8211;<\/p>\n<p>1. PRIMA FACIE VIABILITY OF THE JV\/WOS OUTSIDE INDIA;<\/p>\n<p>2. CONTRIBUTION TO EXTERNAL TRADE AND OTHER BENEFITS WHICH WILL ACCRUE TO INDIA THROUGH SUCH INVESTMENT;<\/p>\n<p>3. FINANCIAL POSITION AND BUSINESS TRACK RECORD OF THE INDIAN PARTY AND THE FOREIGN ENTITY;<\/p>\n<p>4. EXPERTISE AND EXPERIENCE OF THE INDIAN PARTY IN THE SAME OR RELATED LINE OF ACTIVITY OF THE JV OR WOS OUTSIDE INDIA.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/13.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13179\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/13.png\" alt=\"\" width=\"955\" height=\"901\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/13.png 445w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/13-300x284.png 300w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/a><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"SOURCES_OF_FUNDS\"><\/span><span style=\"color: #000080;\"><strong>SOURCES OF FUNDS <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>An Indian party may, with prior approval of RBI, undertake financial commitment without equity contribution in JV \/ WOS provided\u00a0it&#8217;s\u00a0as per the business requirement of the Indian party and also as per the legal requirement of the host country.<\/li>\n<li>\u201cFinancial commitment\u201d as defined in regulation 2 (f) of interchange MANAGEMENT (TRANSFER OR ISSUE OF ANY FOREIGN SECURITY) REGULATIONS, 2004 means the number of direct investments by way of contribution to equity, loan and 100 percent of the number of guarantees and 50 percent of the performance guarantees issued by an Indian party to or on behalf of its overseas venture Company or Wholly Owned Subsidiary<\/li>\n<li>Proposals from the Indian party for undertaking financial commitment without equity contribution in JV \/ WOS\u00a0could also be\u00a0considered by the\u00a0depository financial institution\u00a0under the approval route\u00a0supported\u00a0the business requirement of the Indian Party and legal requirement of the host country\u00a0during which\u00a0JV\/WOS\u00a0is found.<\/li>\n<li>Accordingly, an Indian party must approach RBI through its AD bank to induce the approval for subscribing to the shares inconsiderately.<\/li>\n<\/ol>\n<p><em><strong>For more reading: <\/strong><\/em><a href=\"https:\/\/carajput.com\/blog\/setting-up-subsidiary-outside-india\/\"><em><strong>setting-up subsidiary outside India<\/strong><\/em><\/a><\/p>\n<p><em><strong>Also read mor<\/strong><strong>e<\/strong><strong>: <a href=\"https:\/\/carajput.com\/blog\/basic-document-filing-fc-gpr-form-with-rbi\/\">Basic Document &#8211; filling FC-TRS FORM with RBI\u00a0<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"TRANSFER_BY_WAY_OF_SALE_OF_SHARES_OF_JV_WOS_OUTSIDE_INDIA\"><\/span><span style=\"color: #000080;\"><strong>TRANSFER BY WAY OF SALE OF SHARES OF JV\/ WOS OUTSIDE INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An Indian Party may transfer by way of sale to a different Indian Party or to a resident outside India.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Any_share_or_security_held_by_it_in_a_very_JV_WOS_outside_India_subject_to_the_following_conditions\"><\/span>Any share or security held by it in a very JV\/ WOS outside India subject to the following conditions:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The sale\u00a0doesn&#8217;t\u00a0end in\u00a0any write-off of the investment made;<\/li>\n<li>In case shares of overseas JV\/ WOS are listed, the sale is to be effected through stock exchanges;<\/li>\n<li>If shares of overseas JV\/ WOS aren&#8217;t listed and shares are disinvested by a personal arrangement \u2013 share price mustn&#8217;t be but the worth derived by CA\/ CPA;<\/li>\n<li>An Indian Party\u00a0mustn&#8217;t\u00a0have any outstanding dues from the overseas JV\/ WOS;<\/li>\n<li>The overseas JV\/ WOS has been\u00a0operative\u00a0for\u00a0a minimum of\u00a0one full year\u00a0and therefore the\u00a0APR\u00a0along with\u00a0audited accounts for that year has been submitted\u00a0to order\u00a0Bank;<\/li>\n<li>An Indian Party\u00a0isn&#8217;t\u00a0under any investigation by CBI\/ DoE\/ SEBI\/ IRDA or\u00a0the other\u00a0regulatory agency\u00a0in India.<\/li>\n<\/ul>\n<p>Further, An Indian Party may disinvest, without prior approval of the\u00a0bank, in any of the under noted cases where\u00a0the quantity\u00a0repatriated after disinvestment\u00a0is a smaller amount\u00a0than\u00a0the initial\u00a0amount invested:<\/p>\n<p>The Indian Party shall make sure that the sale proceeds of shares\/securities shall be repatriated within 90 days from the date of sale of shares\/securities and therefore the documentary evidence to the present effect shall be submitted to the RBI through the designated AD bank.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"RESTRICTIONS_ON_FORMING_STEP_DOWN_SUBSIDIARY_SDS_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>RESTRICTIONS ON FORMING STEP DOWN SUBSIDIARY (SDS) COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>There are not any restrictions on entities having JVs\/WOSs abroad putting in place second-generation operating companies (step-down subsidiaries) within the general limits applicable for investments under the automated route.<\/li>\n<li>However, companies wishing to line up step-down operating subsidiaries to undertake financial sector activities will go with the extra requirements for direct investment within the financial services sector.<\/li>\n<li>The provisions of Notification No. FEMA 120\/RB-2004 dated July 7, 2004, as amended from time to time,\u00a0managing\u00a0transfer and issue of any foreign security to Residents\u00a0don&#8217;t\u00a0permit an IP\u00a0to line\u00a0up Indian subsidiary(s) through its foreign WOS or JV nor do the provisions permit an IP\u00a0to accumulate\u00a0a WOS or invest in JV that already has direct\/indirect investment in India under\u00a0the automated\u00a0route.<\/li>\n<\/ol>\n<p>However, in such cases, IPs can approach the\u00a0banking concern\u00a0for prior approval through their Authorized Dealer Banks\u00a0which can\u00a0be considered on a case-to-case basis,\u00a0betting on\u00a0the merits of the case.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"REPORTING_COMPLIANCES_AND_OBLIGATIONS_OF_INDIAN_PARTY_MAKING_ODI\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/policies-procedure-and-legal-framework-for-foreign-direct-investment-in-india\/\"><span style=\"color: #000080;\"><strong>REPORTING COMPLIANCES AND OBLIGATIONS OF INDIAN PARTY MAKING ODI<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/REPORTING-COMPLIANCES-AND-OBLIGATIONS-OF-INDIAN-PARTY-MAKING-ODI..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13181\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/REPORTING-COMPLIANCES-AND-OBLIGATIONS-OF-INDIAN-PARTY-MAKING-ODI..jpg\" alt=\"REPORTING COMPLIANCES AND OBLIGATIONS OF INDIAN PARTY MAKING ODI.\" width=\"969\" height=\"451\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/REPORTING-COMPLIANCES-AND-OBLIGATIONS-OF-INDIAN-PARTY-MAKING-ODI..jpg 665w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/REPORTING-COMPLIANCES-AND-OBLIGATIONS-OF-INDIAN-PARTY-MAKING-ODI.-300x140.jpg 300w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/a><\/p>\n<table style=\"height: 919px;\" width=\"933\">\n<tbody>\n<tr>\n<td width=\"153\"><strong><u>ONE TIME<\/u><\/strong><\/td>\n<td width=\"498\">\u2022 THE INDIAN COMPANY INTENDING TO MAKE A DIRECT INVESTMENT UNDER THE AUTOMATIC ROUTE IS REQUIRED TO SUBMIT FORM ODI WITH THE DESIGNATED BANK, DULY SUPPORTED BY THE DOCUMENTS LISTED THEREIN.<\/td>\n<\/tr>\n<tr>\n<td width=\"153\"><strong><u>RECURRING<\/u><\/strong><\/td>\n<td width=\"498\">\u2022 SUBMIT\u00a0<strong>ANNUAL PERFORMANCE REPORT\u00a0<\/strong>OF OVERSEAS ENTITY TO THE RESERVE BANK OF INDIA THROUGH AD BANK.<\/p>\n<p>\u2022 SUBMIT\u00a0<strong>ANNUAL RETURN\u00a0<\/strong>ON FOREIGN LIABILITIES AND FOREIGN ASSETS.<\/p>\n<p>\u2022 REPORTING OF THE DETAILS IN RESPECT OF DECISIONS TAKEN BY THE\u00a0<strong>JV\/WOS IN RESPECT OF DIVERSIFICATION OF THEIR ACTIVITIES \/SETTING UP OF STEP-DOWN SUBSIDIARIES\/ALTERATION IN ITS SHAREHOLDING PATTERN <\/strong>WITHIN\u00a0<strong>30 DAYS OF SUCH ALTERATION.<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"153\"><strong><u>EVENT WISE<\/u><\/strong><\/td>\n<td width=\"498\">\u2022 RECEIVE SHARE CERTIFICATES OR ANY OTHER DOCUMENTARY EVIDENCE OF INVESTMENT IN THE FOREIGN JV \/ WOS AS EVIDENCE OF INVESTMENT AND SUBMIT THE SAME TO THE DESIGNATED AD <strong>WITHIN 6 MONTHS.<\/strong><\/p>\n<p>\u2022 REPATRIATE TO INDIA THE AMOUNT IN RESPECT OF DIVIDENDS, ROYALTY, TECHNICAL FEES, ETC, AND THE SAME BE MADE <strong>WITHIN 60 DAYS OF THEIR DUE DATE.<\/strong><\/p>\n<p>\u2022 WHERE THERE IS DISINVESTMENT, THE SALE PROCEEDS IN RESPECT OF SHARES AND SECURITIES, IS REQUIRED TO BE REPATRIATED TO INDIA IMMEDIATELY ON RECEIPT THEREOF AND IN ANY CASE\u00a0<strong>NOT LATER THAN 90 DAYS\u00a0<\/strong>FROM THE DATE OF SALE OF THE SHARES \/SECURITIES AND DOCUMENTARY EVIDENCE TO THIS EFFECT SHALL BE SUBMITTED TO THE RESERVE BANK THROUGH THE DESIGNATED AD.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"INVESTMENT_IN_FOREIGN_SECURITIES_ASIDE_FROM_BY_WAY_OF_DIRECT_INVESTMENT\"><\/span><strong><span style=\"color: #000080;\">INVESTMENT IN FOREIGN SECURITIES ASIDE FROM BY WAY OF DIRECT INVESTMENT<\/span><br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><strong>By Way Of \u2013 Gift\/ Inheritance\/ ESOP<\/strong><\/li>\n<\/ol>\n<ul>\n<li>As per regulation 22 of exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, General permission has been granted to a person resident in India who is an individual: &#8211;\n<ul>\n<li>to accumulate foreign securities as a present from any individual resident outside India; or to acquire shares by way of inheritance from an individual whether resident in or outside India.<\/li>\n<li>An individual resident in India being a person who is an employee\/ director of Indian office\/branch of a far-off entity\/ subsidiary of a foreign entity in India\/ Indian company during which foreign entity has direct\/ indirect equity holding, may accept shares offered by such foreign entity provided that:<\/li>\n<li>the shares under the ESOP scheme are offered by the issuing company globally on a uniform basis; and<\/li>\n<li>The annual return is required to be submitted by the Indian company to RBI, through AD Bank providing details of remittance\/ beneficiary, etc.<\/li>\n<li>by way of bonus or right shares issued in respect of the foreign securities already held by them.<\/li>\n<li>to acquire shares under the Cashless Employees option Scheme issued by an organization outside India provided it doesn&#8217;t involve any remittance from India<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table style=\"height: 528px;\" width=\"783\">\n<tbody>\n<tr>\n<td width=\"355\"><strong>*<u>MEANING OF PRI (PERSON RESIDENT IN INDIA): \u2013<\/u><\/strong><strong>A PERSON RESIDING IN INDIA FOR\u00a0<\/strong><strong>MORE THAN 182 DAYS<\/strong><strong> DURING THE COURSE OF THE\u00a0<\/strong><strong>PRECEDING FINANCIAL YEAR.<\/strong><strong>\u00a0HOWEVER, IT\u00a0<\/strong><strong>DOES NOT INCLUDE\u00a0<\/strong><strong>A PERSON\u00a0<u>WHO HAS COME TO OR STAYS IN INDIA<\/u>, IN EITHER CASE, OTHERWISE THAN:<\/strong><\/p>\n<p><strong>(A) HE HAS COME FOR OR TAKING EMPLOYMENT IN INDIA<\/strong><\/p>\n<p><strong>(B) FOR CARRYING ON BUSINESS OR VOCATION IN INDIA<\/strong><\/p>\n<p><strong>(C) FOR ANY OTHER PURPOSE, IN SUCH CIRCUMSTANCES AS WOULD INDICATE HIS INTENTION TO STAY IN INDIA FOR AN UNCERTAIN PERIOD.<\/strong><\/td>\n<td width=\"355\"><strong>*<u>MEANING OF PROI (PERSON RESIDING OUTSIDE INDIA): \u2013<\/u><\/strong><strong>PERSON RESIDING OUTSIDE INDIA MEANS A PERSON WHO IS NOT COVERED AS PER THE DEFINITION OF <\/strong><strong><u>PRI (PERSON RESIDENT IN INDIA).<\/u><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"COMPLIANCE_REQUIREMENTS_WHEN_SHARES_ARE_ACQUIRED_WITHOUT_CONSIDERATION\"><\/span><span style=\"color: #000080;\"><strong>COMPLIANCE REQUIREMENTS WHEN SHARES ARE ACQUIRED WITHOUT CONSIDERATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The Indian Party Should Report\u00a0the main points\u00a0of the acquisition of securities by way of gift\/ inheritance within 30 days of such acquisition.<\/li>\n<li>Where the ESOP is issued to an employee of an Indian branch\/ subsidiary, the same is required to be reported in form as annexed below as Annexure A.<\/li>\n<\/ul>\n<p><em><a href=\"https:\/\/carajput.com\/blog\/benefits-of-start-ups-under-the-startup-india-scheme\/\"><u><strong>For more reading: <\/strong><\/u><strong>Advantages and know details about Startup India Scheme<\/strong><\/a>v<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overseas Direct Investment Without Remittance of Funds From India An investment outside India\u00a0will be\u00a0done by an Indian party or\u00a0a private\u00a0or (single or in association with another resident individual or with an \u2018Indian Party\u2019). All resident individuals, including minors, are allowed to freely remit up to USD 250,000 per\u00a0yr. An Indian Party is allowed to make &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[4495],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13172"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=13172"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13172\/revisions"}],"predecessor-version":[{"id":21814,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13172\/revisions\/21814"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=13172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=13172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=13172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}