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Master Circular on Foreign Investment in India
Foreign Direct Investment-Reporting of issue/transfer of Shares to/by a FVCI
Foreign investment in India by SEBI registered Long Term investors in Government dated Securities
RBI has vide its circular : RBI/2013-14/15 Master Circular No.15 /2013-14 dated 1st July, 2013 released the Master circular on Foreign Investment in India. The regulatory framework and instructions issued by the Reserve Bank have been compiled in this Master Circular. The Master Circular also covers the area of ‘Investment in capital of partnership firms or proprietary concern’ which is regulated in terms of Section 2(h) of Section 47 of Foreign Exchange Management Act, 1999, read with Notification No. FEMA 24/2000-RB dated May 3, 2000.The Master Circular has being issued with a sunset clause of one year which will stand withdrawn on July 1, 2014 and be replaced by an updated Master Circular on the subject
RBI has , vide circular no. RBI/2012-13/529 A.P (DIR SERIES) CIRCULAR NO. 110, dated June 12, 2013, issued to all Category-I Authorised Dealer banks, clarified the following: Wherever a SEBI registered FVCI acquires shares of an Indian company under FDI Scheme in terms of Schedule 1 of Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time, such investments have to be reported in form FC-GPR/FC-TRS only, as applicable. Where the investment is under Schedule 6 of the Notification, no FC-GPR/FC-TRS reporting is required. Such transaction would be reported by the custodian bank in the monthly reporting format as prescribed by RBI from time to time.
RBI has , vide circular no. RBI/2012-13/530 A.P (DIR SERIES) CIRCULAR NO. 111, dated June 12, 2013, informed to all Category-I Authorised Dealer banks, that SEBI registered Foreign Institutional Investors and long term investors may purchase, on repatriation basis, Government Securities and non-convertible debentures/ bonds issued by an Indian company subject to such terms and conditions as mentioned therein and limits as prescribed for the same by RBI & SEBI.