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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Income tax return change regime form necessary or not?
- EXEMPTION OF LONG TERM GAIN UNDER SECTION 54F
- Refund of Rs.4,00,000/- pursuant to Appeal Order – Deceased Proprietor & Closed Bank Account
- Machinery taking back from repair work shop
- Resignation of auditor and appointment and cfss
- Partnership firm under Section 44AD
- Partner retired
- RCM PAYMENT OF APRIL 2025 NOT PAID IN YEAR AND NOW PAYING IN OCTOBER 2026 RETURN
- EPF RETURN FILLING
- Patient expenses
- Tax Audit Mandatory or Optional
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
