foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible
foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible
| Originally posted by :radheyshyam | ||
| " | foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible | " |
Yes there are some formalities for obtaining Loan from foreign collaberater . Prior Intimation & compliances required to RBI and some cases prior APPROVAL required dependind upon some parameters like Enduse, Borrowing limit, cost ceilling,Sector etc subject to some restrictions.
Pls read the ECB guidelines attached herewith.Also read the new ECB circular placed in CAclub homepage
It would be relevant to note the provisions of, inter alia, the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
Kind regards,
Hitesh
SSGS and Associates
Chennai
CA Inter
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R P S K & Associates
Nashik
CA Inter
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CAclubindia
