17 October 2010
Dear Experts, what is the procedure to be followed in respect of FEMA for investing in BID SECURITY with foreign govt. The amount involves is Rs.70 lacs. This can be given in the form of BANK GUARANTEE to the foreign govt or through foreign currency. Pls let me know if any RBI Guidelines to be followed?
You may visit your regional RBI ECD department and they will guide you.
Or you can ask the details from your authorised dealer ( your banker) and they will guide.
Under fast track process , in case an Indian company desires to have bidding/tender procedure, which may involve remittance towards Earnest Money Deposit (EMD) or issue of bid bond guarantee by a bank in India in favor of the overseas authorities, application should be submitted to Central Office of Reserve Bank by way of a letter, at least one month prior to the last date for submission of bid to the overseas authority, along with following documents:
1. Certified relevant extracts of bidding guidelines of foreign company.
R.V.Seckar
Pl do visit my blogs :http://rvsekar.blogspot.com/
CAclubindia
