Capital Account Transactions - Liberalisation of
A.P. (Dir Series) (2002-2003) Circular No. 96, Dated 28-4-2003
Attention
of authorised dealers is invited to A.P. (DIR Series) Circular No. 66 dated
January 13, 2003 advising certain liberalisation measures in respect of
overseas direct investment by various categories of investors. The matter has
been reviewed and clarification on certain issues is indicated in Annexure I to
this Circular.
2. Authorised
dealers are required to put in place an adequate reporting mechanism and obtain
such declaration/undertaking from their constituents to enable them to maintain
a database. However, in order to ensure availability of uniform database,
designated branches of authorised dealers may maintain the details of transactions
routed through them as under:—
i. Name/address/Telephone/Fax
No./e-mail ID/PAN No.
ii. Amount remitted to broker
iii. Date of remittance
iv. Date of purchase of shares
v. Name of the scrip purchased
vi. Amount paid Price/Premium brokerage/Total
vii. Date of sale of shares
viii. Amount received Price/Premium/Total
ix. Net balance held abroad
3. As stated in
part 3(d) of the circular referred to above, a format for forwarding to Reserve
Bank monthly statement prepared on the basis of the database mentioned at para
2 above, in respect of each of the categories of the investors is given in
Annexure II. Authorised dealers may ensure that the monthly statements are
forwarded by the designated branches in terms of A.P. (DIR Series) Circular No.
43 dated April 30, 2002 to the Chief General Manager, Exchange Control
Department, Reserve Bank of India, Overseas Investment Division, Amar Building,
3rd Floor, Sir P.M. Road, Fort, Mumbai-400 001. The statements should reach
Reserve Bank of India on or before 10th of the succeeding month.
4. Necessary
amendments to the Foreign Exchange Management Regulations, 2000 are being
issued separately.
5. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
6. 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).
Annexure - I
Overseas Investments by resident individuals/corporates - Clarifications
1. Remittance
towards registration with overseas brokerage firms - Authorised dealers are
permitted to allow initial remittances towards registration charges for
individuals/corporates to register themselves with overseas brokerage firms.
2. Availment
of various facilities provided by overseas brokerage firms - At present
overseas investment in permitted in companies listed on a recognised stock
exchange and which have a minimum shareholding of 10 per cent in an Indian
company listed on a recognised stock exchange in India. Investment in money
market funds or bank deposits is not permitted. Investment is allowed in equity
instruments by way of cash remittances only. Investment with borrowed funds
is not permitted. Similarly, the investors are not permitted to lend the securities
acquired and laying with the brokers or with a depository for the purpose of
earning any return thereon.
3. Investment
in—
a. Listed companies where subsidiaries are
holding 10 per cent or more stake in listed Indian companies;
b. Listed foreign companies where investment
is through a Special Purpose Vehicle (SPV); and
c. Listed foreign financial funds holding 10
per cent stake in a listed Indian company
Investment
in the companies referred to above is not permitted.
4. Permission to Indian investors to open
overseas bank accounts and securities accounts - A separate circular is being
issued.
Annexure - II
Statement
Indicating Investment made in terms of AP (DIR Series) Circular No. 66 Dated
January 13, 2003 Statement of Investments made during the month
of..............
Name
of the Bank.....................................................................................
Branch............................................................................................................
AD
Code.........................................................................................................
|
|
|
|
(USD in thousands) |
|
|
|
No. of Investors |
Investments made during the month (Outflow) |
Disinvestment made during the month (Inflow) |
Net amount of Investment held abroad |
|
|
(1) |
(2) |
(3) |
(2)-(3) |
|
Position as on 1st of..... |
|
xx |
xx |
|
|
Position as on 30th/31st of..... |
|
|
|
|
Corporates
|
|
|
|
(USD in thousands) |
||
|
|
No. of Investors |
Investments made during the month (Outflow) |
Disinvestments made during month (Outflow) |
Net amount of Investment held abroad |
|
|
|
(1) |
(2) |
(3) |
(2)-(3) |
|
|
Position as on 1st of......... |
|
** |
** |
|
|
|
Position as on 30th/31st of..... |
|
|
|
|
|
|
|
|
|
|
|
|
(USD in thousands) |
|||||||
|
Name of the Mutual Fund |
Investment made during the month (Outflow) |
Disinvestments made during the month (Inflow) |
Net amount of Investment held abroad |
||||||||||
|
|
ADR/ GDR |
Debt Instruments |
Equity |
ADR/ GDR |
Debt Instruments |
Equity |
ADR/ GDR |
Debt Instruments |
Equity |
||||
|
Position as on 1st of........ |
** |
** |
** |
** |
** |
** |
|
|
|
||||
|
Position as on 30th/31st |
|
|
|
|
|
|
|
|
|
||||
|
of........ |
|
|
|
|
|
|
|
|
|
||||
* Separate
statement in respect of each Mutual Fund by the designated AD has been
dispensed with.
[V1]Separate
statement in respect of each Mutual Fund by the designated AD has been
dispensed with.