Foreign wos: conversion of loans into prefrence shares

This query is : Resolved

Vandana Gour (Querist)
Follow

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.

Ajay Mishra

Ajay Mishra (Expert)
Follow

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

Vandana Gour

Vandana Gour (Querist)
Follow

03 May 2012 Thanks.

Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.

Ajay Mishra

Ajay Mishra (Expert)
Follow

03 May 2012 Hi

First of all you will take the approval from Government then you will do the further proceeding.

Vandana Gour

Vandana Gour (Querist)
Follow

03 May 2012 Thanks.

Is there any reporting compliance with RBI because this will increase number of shares held in Singapore Subsidiary.

Ajay Mishra

Ajay Mishra (Expert)
Follow

03 May 2012
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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Chaitanya Voolla

chandradhass sathish

Saumil Kapadia

CA Archana R

Tax Expert Group

Subscribe Now

Foreign wos: conversion of loans into prefrence shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA