donation of funds by indian corporates
A.P. (DIR Series) (2001-2002) Circular No. 25, dated 1-3-2002
We
have been receiving requests from Indian corporates to donate funds from their
foreign exchange earnings to worthy causes like setting up of chairs in
educational institutions and other welfare activities. It has been decided to
allow Indian corporates with proven track record to contribute funds from their
foreign exchange earnings for setting up chairs in educational institutions
outside India and similar such purposes. Such cases will be considered by
Reserve Bank on case-to-case basis. Authorised dealers may forward all such
applications to the Chief General Manager, Reserve Bank of India, Central
Office, Exchange Control Department, External Payments Division, Central Office
Building, Mumbai-400 001, together with (a) details of their foreign
exchange earning during the last 3 years; (b) brief background of the
company’s activities; (c) details of the chair proposed to be set up in
the educational institution; and (d) likely benefits to the corporate.
2. Authorised
dealers may bring the contents of this circular to the notice of their
constituents concerned.
3. 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).