Conversion of loan into equity under fema regulations
This query is : Resolved
Palak Kaur Kochhar
(Querist)
05 June 2017
Hi, one urgent query.
What are the conditions and procedure to be complied with in case of conversion of loan given by an Indian entity to its overseas WOS into equity? Whether RBI approval is required?
Pls help.
What are the conditions and procedure to be complied with in case of conversion of loan given by an Indian entity to its overseas WOS into equity? Whether RBI approval is required?
Pls help.
CA R SEETHARAMAN
(Expert)
05 June 2017
Under the Automatic Route, an Indian entity does not require any prior approval from the Reserve Bank for making overseas direct investments in a Joint Venture / Wholly Owned Subsidiary (JV / WOS) abroad.
Palak Kaur Kochhar
(Querist)
05 June 2017
Thank you for your quick response Sir, What is the procedure & necessary form filing with this respect? Form ODI ?
CA R SEETHARAMAN
(Expert)
05 June 2017
See the link for more details.
https://www.indialegalhelp.com/files/guide-business-abroad.pdf
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10351&Mode=0
https://www.indialegalhelp.com/files/guide-business-abroad.pdf
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10351&Mode=0
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