Foreign wos: conversion of loans into prefrence shares
This query is : Resolved
03 May 2012
Dear All,
Our company is having a WOS in Singapore which is incorporated 6 months ago. The company is planning to convert the pre-operative expenses into Equity Shares and loans to subsidiary into Preference Shares. All this arrangment is well within 400% cap.
Please guide whether this falls under the approval route and related RBI compaliances.
Our company is having a WOS in Singapore which is incorporated 6 months ago. The company is planning to convert the pre-operative expenses into Equity Shares and loans to subsidiary into Preference Shares. All this arrangment is well within 400% cap.
Please guide whether this falls under the approval route and related RBI compaliances.
03 May 2012
Hi
The conversion is permissible under FDI policy. But if the investment is increased from sectoral cap then you should go for Government approval route, if it is permissible.
Regards
The conversion is permissible under FDI policy. But if the investment is increased from sectoral cap then you should go for Government approval route, if it is permissible.
Regards
03 May 2012
Thanks.
Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.
Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.
03 May 2012
Hi
First of all you will take the approval from Government then you will do the further proceeding.
First of all you will take the approval from Government then you will do the further proceeding.
03 May 2012
Thanks.
Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.
Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.
03 May 2012
The whole proceeding will be done by Authorised Banker (AD) for approval.
The whole proceeding will be done by Authorised Banker (AD) for approval.
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