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RESERVE BANK OF INDIA (RBI)

I. Annual Return on Foreign Liabilities and Assets (FLA Return) – Reporting by Limited Liability Partnerships dated 21.10.2015

In order to capture the statistics relating to Foreign Direct Investments (FDI), both inward and outward, by Limited Liabilities Partnerships (LLPs) in India, it has been decided that henceforth, all LLPs that have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) as well as in the current year, shall submit the FLA return to the Reserve Bank of India by July 15 every year, in the format as prescribed in the A.P (DIR Series) Circular No. 145 dated June 18, 2014.

Since, LLPs do not have21-Digit CIN (Corporate Identity Number), they are advised to enter ‘A99999AA9999LLP999999’ against CIN in the FLA Return.

Reserve Bank has since amended the subject Regulations accordingly through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2015 which have been notified through Notification No. FEMA. 351/2015-RB dated September 30, 2015, vide G.S.R. No. 745(E) dated September 30, 2015.

II. Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Ninth Amendment) Regulations, 2015 dated 06.10.2015

The Reserve Bank of India has made the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA.20/2000-RB dated 3rd May 2000), namely: -

  1. Amendment to Schedule 5: -In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000), in Schedule 5,
    1. after the existing sub-paragraph (2), the following shall be added namely: -“(3) A Non- Resident Indian may subscribe to National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act. The annuity/ accumulated saving will be repatriable.”
    2. In paragraph 3, after the existing sub-paragraph (2), the following shall be inserted namely:“(2A) A non-resident Indian who subscribes to the National Pension System, under sub-paragraph (3) of paragraph (2) of this Schedule shall make payment either by inward remittance through normal banking channels or out of funds held in his NRE/FCNR/NRO account.”
  2. They shall come into force from the date of their publication in the Official Gazette.
III. Investment by Foreign Portfolio Investors (FPI) in Government Securities dated 06.10.2015
  1. This is with respect to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000- RB dated May 3, 2000, as amended from time to time in relation to the limits for investment by foreign portfolio investors (FPI) in Government securities.
  2. Under the Fourth Bi-monthly Monetary Policy Statement for the year 2015-16 issued on September 29, 2015, a Medium Term Framework (MTF) for FPI limits in Government securities was announced to provide a more predictable regime.
  3. Accordingly, for the current financial year, it has been decided to enhance the limit for investment by FPIs in Government Securities in two tranches from October 12, 2015 and January 1, 2016 respectively as under:
    (Rs in billion)
    Central Government securities State Development Loans Aggregate
    For all FPIs Additional for Long Term FPIs Total For all FPIs (including Long Term FPIs)
    Existing Limits 1244 291 1535 Nil 1535
    Revised limits with effect from October 12, 2015 1299 366 1665 35 1700
    Revised limits with effect from January 1, 2016 1354 441 1795 70 1865
  4. For the present, the security-wise limit for FPI investments will be monitored on a day-end basis and those Central Government securities in which aggregate investment by FPIs exceeds the prescribed threshold of 20% will be put in a negative investment list. No fresh investments by FPIs in these securities will be permitted till they are removed from the negative list. There will be no security-wise limit for SDLs for now.
  5. All other existing conditions, including investment of coupons being permitted outside the limits and investments being restricted to securities with a minimum residual maturity of three years, will continue to apply.
  6. Further operational guidelines relating to allocation and monitoring of limits have been issued by the Securities and Exchange Board of India (SEBI)

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