HEDGE-SQUARE
Vide this Circular it has been decided that a software exporter under STPIs or SEZs/ EPZs/ 100%EOU/ DTA having annual revenue of at least Rs. 1,000 Crore or who files at least 600 SOFTEX Forms, annually on all India basis, would become eligible for filing statements in revised excel sheets, as prescribed.
05.02.2013
Export of Goods and Services – Simplification and Revision of Softex Procedure at SEZs Overseas Direct Investment Circular No: 66 Date: 01.01.2013
I N S I D E T H I S
FEMA – SNAPS (January, 2013)
External Commercial Borrowings Policy – Non-Banking Financial Company – Infrastructure Finance Companies (NBFC-IFCs) Circular No: 69 Date: 07.01.2012 Vide this circular limit of External Commercial Borrowing (ECB) (including outstanding) for Non – Banking Financial Company (NBFC) categorised as Infrastructure Finance Companies (IFCs) has been increased from 50% to 75% of their owned funds under automatic route. Approval of Reserve Bank of India would be required for availing ECB of more than 75% of total owned funds.
It should be noted that the permitted end-use of an ECB availed shall be for on-lending to the infrastructure sector, as defined under the extant ECB policy.
Simplification & Revision of Softex Procedure ECB by NBFC-IFC Issue of Shares against Import of Capital Goods Delay in Filing Compliance Documents of the Company by the Authorised Dealers ECB – Repayment of Rupee Loan
Foreign Direct Investment (FDI) in India - Issue of Equity Shares under the FDI Scheme Allowed under the Government route Circular No: 74 Date: 10.01.2012 Vide this Circular RBI amended the position in issuance of equity shares/ preference shares under the Government Route against import of capital goods. RBI has disallowed said issue of equity/ preference shares against an import of Second Hand Machineries (which was allowed earlier) and in line with this, same has been excluded from the valuation requirement.
Reporting under Foreign Exchange Management Act, 1999 Circular No: 76 Date: 17.01.2012
External Commercial Borrowings (ECB) Policy –Repaymentof Rupee loans and/or fresh Rupee capital expenditure – USD 10 billion scheme. Circular No: 78 Date: 21.01.2013
“Liberalisation in ECB”
FEMA SNAPS – January, 2013 Page 2
Vide this Circular RBI has addressed the issues related to the delay in filing of various Company documents from the side of Authorised Dealers (ADs). There are various compliance documents including of Annual Performance Reports, ECB Forms, ODI Forms, Intimation of FDI transaction, which needs to be submitted by the concerned Companies to the RBI through Authorised Dealers. RBI stated that it is in late receipt of said compliance documents from ADs. The Circular is of directive nature and does not contain any fix amount of penalty on ADs for non submission or delayed submission.
Pursuant to this Circular, Indian Companies engaged in hotel sector with a total project cost of INR 250 Crores or more are now allowed to avail ECB for repayment of outstanding Rupee loan(s) obtained from the domestic banking system and / or for fresh Rupee capital expenditure. Previous to this circular said facility was extended to the Indian Companies engaged in the manufacturing and infrastructure sector. Above said liberalisation is subject to the compliance with other terms and conditions prescribed earlier in related Circulars.
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