30 May 2011
One of my client is a Joint Venture (JV) of Indian company & a German Company. German Joint venture partner has supplied machinery to JV company in October 2010. Instead of making payment to German company, JV company wants to issue shares to German company in lieu of machinery supplied. Consequently, Indian partner company will introduce cash for their share to maintain the ratio of JV.
Can some one list of procedure to be followed for the same & compliance required with various govt. agencies.
05 June 2011
Shares can be issued against machinery but subject to the approval from the Government. See the latest circular on the FBI policy in the paragraph titled, issue of shares against conversion of ECB/ lump sum payment.
CAclubindia
