Fema

Others 830 views 2 replies

Shilpa Uppal

24 Points Joined October 2012

1. Indian Company formed WOS abroad;e

2. Capital investment in that WOS was just 1 USD;

3. There was no remittance abroad thru banking channel since it is just 1 Dollar;

4. Now my question is : do Indian Co need to intimate this to RBI that it has formed WOS abroad wen there is no flow of funds abroad?? U can refer RBI master Circular on Investment abroad in JV/WOS

Appreciate ur valuable inputs

Replies (2)

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

Compliance of RBI provisions is mandatory even in cases of subscripttion of share capital . the uprovisions shall apply even in cases where the money has not been transferred.

Anuj

femaquery @ gmail.com

Poonam Bansal

Company Secretary

359 Points Joined July 2009

Hello Mr. Anuj,

i had 1 query, please help me out...our company want to sell convertible warrant to foreigner. The value per warrant is Rs.10, bt the foreigner is ready to pay Rs.40 at the time of purchase of warrants and Rs.10 at the time of exercise of warrants, means he is ready to pay total rs.50 per warrant, warrants are traded in BSE and it will be lapse on 15th March 2013, if not exercised.

Now want to know what is the procedure we should follow to sale warrant to foreigner??

Thanks