Custom Rate of Exchange of Conversion of the Foreign Currency on 31st March 2015

Custom exchange rates for 31st March 2015. CBDT has issue the rate of exchange of one unit of foreign currency equivalent to Indian rupees for different foreign currency like Australian Dollar, Bahrain Dina, Canadian Dollar, EURO, Hong Kong Dollar, Kuwait Dinar, New Zealand Dollar, Norwegian Kroner, Pound Sterling, Singapore Dollar, South African Rand, Saudi Arabian Riyal, Swedish Kroner, Swiss Franc, UAE Dirham, US Dollar, Japanese Yen (100 YEN), Kenya Shilling (100 Shiling).

Government of India Ministry of Finance Department of Revenue Central Board of Excise And Customs has issued the notification for exchange rate on 19th March 2015 Notification No.32/2015-CUSTOMS and updated on 25th March, 2015 Notification No. 33/2015. Exchanges Rates are updated on fortnightly basis.

S.NOForeign CurrencyRate of exchange of one unit of foreign currency equivalent to Indian rupees
For Imported
Goods
For Export
Goods
1Australian Dollar49.0047.75
2Bahrain Dinar170.55161.25
3Canadian Dollar50.2049.00
4Danish Kroner9.158.90
5EURO68.2066.50
6Hong Kong Dollar8.158.00
7Kuwait Dinar215.05203.05
8New Zealand Dollar47.2546.05
9Norwegian Kroner8.057.85
10Pound Sterling94.2092.10
11Singapore Dollar45.8544.75
12South African Rand5.305.05
13Saudi Arabian Riyal17.1516.20
14Swedish Kroner7.307.10
15Swiss Franc63.8062.30
16UAE Dirham17.5016.55
17US Dollar63.0062.00
18Japanese Yen (100 YEN)52.5551.35
19Kenya Shilling (100 Shiling)69.9566.00

Download RBI Circular No. 19/2013-14/173 Dated August 7, 2013 for Non-Resident Deposits – Comprehensive Single Return (NRD-CSR): Submission under XBRL

Download RBI Circular No. 19/2013-14/173 Dated August 7, 2013 for Non-Resident Deposits – Comprehensive Single Return (NRD-CSR): Submission under XBRL

RBI/2013-14/173

A.P. (DIR Series) Circular No. 19                                                    August 7, 2013

To,

All Banks Authorised to deal in Foreign Exchange Madam / Sir,

Non-Resident Deposits – Comprehensive Single Return (NRD-CSR):
Submission under XBRL

Attention of banks maintaining Non-Resident Deposits (NRD) Accounts is invited to A.P. (DIR Series) Circular No.55 dated May 9, 2007 on NRD-CSR software package being used by the banks for submission of detailed monthly data on nonresident deposits to the Reserve Bank.

2.          It has been decided to move the NRD-CSR reporting to eXtensible Business  Reporting  Language (XBRL)  platform  to  provide  validations  for processing requirement in respect of existing NRD schemes, improve data quality, enhance the security-level in data submission, and enable banks to use various features of XBRL-based data submission, and tracking. The existing formats of NRD-CSR have also been rationalised for reporting bank-wise consolidated data under XBRL. This would replace the existing system where banks generate the NRD-CSR DAT file from RBI-provided software and submit NRD data through e-mail attachment to our Department of Statistics and Information Management (DSIM), Central Office (CO), on monthly basis.

3.         The  revised  NRD-CSR  format,  maturity  codes,  record  types  and  the validations checks are provided in the Annex. For monthly NRD-CSR submission on XBRL platform by nodal office of banks, the Reserve Bank has provided the following two alternatives:

i. Banks can download the RBI’s NRD-CSR template by logging to the RBI’s OnlineReporting  web-page (http://orfs.rbi.org.in) (Path:  Homepage ÆXBRL-based filing Æ (enter user name / password) Æ Download Returns Package Æ Form NRD-CSR) and use the same to generate instance document (.xml file) after entering details. The instance document can be

uploaded on RBI’s XBRL page. The Reserve Bank (DSIM, CO) will provide User name and Password to all banks for NRD-CSR for this purpose. ii. Banks can use any publically available XBRL tool in relation with their internal database and build NRD-CSR discipline prescribed by RBI, for generation of instance document (.xml file) and upload the same on RBI’s XBRL page.

In addition, banks can also generate instance document in the prescribed format from their internal system, if it provides such flexibility.

4.         It has been decided to switch-over to the XBRL-based NRD-CSR reporting from October 2013. Accordingly, banks are required to capture the NRD-CSR data for XBRL submission from October 1, 2013 (“Go-Live” date). It has been also decided to retain the current prescription of NRD-CSR reporting on or before 10th of the month following the month to which the NRD data pertains. As such, banks may submit the XBRL-compliant NRD-CSR data for October 2013 on or before November 10, 2013. The current email-based reporting of NRD-CSR data would continue for reporting NRD data up to September 2013. The Reserve Bank would not provide any support towards the usage of legacy NRD-CSR software (v3.0)
after the “Go-Live” date.

5.         To facilitate testing of the bank’s NRD-CSR data in the XBRL-based NRD-CSR   reporting,   the   Reserve   Bank   has   enabled   a   test   environment (https://125.18.33.234/orfsxbrl/customer/index.jsp)  for  use  by  reporting  banks before “Go-Live”. Banks can also download the NRD-CSR Returns Package (login with user_name / password Æ Download Returns Package Æ Form NRD-CSR). From “Help” menu of this test-site, banks can also download the Manual on XBRL-based Submission which indicates the processes for creation of bank-checker/bank-maker   by   bank-superuser   with   respective   user_name   and password, and provides other information required for the reporting system.

6.         Reporting banks would be shortly receiving user_name and password along with bank_code for login to the test-site in their respective email-ids, through which they submit NRD-CSR data to RBI (DSIM,CO) under the existing system. In case of any change/difficulties, concerned banks may send a request to the email for assistance.

7.         Further, the Reserve Bank would also provide training on  “NRD-CSR submission under XBRL” to the officers/software personnel of the reporting banks before “Go-Live”. Separate communication is being sent to reporting banks for thispurpose. For any assistance during testing or live periods, banks may contact XBRL helpdesk (‘Contact us’ menu in the homepage of the test-site before the “Go-Live” date and on the ORFS site subsequently).

8.         The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C.D.Srinivasan)

Chief General Manager

Download RBI Circular No.24/2013-14/181 Dated August 14, 2013 for Liberalized Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

Download RBI Circular No.24/2013-14/181 Dated August 14, 2013 for Liberalized Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

RESERVE BANK OF INDIA Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14/181

A. P. (DIR Series) Circular No.24                                                 August 14, 2013

To

All Category-I Authorised Dealer Banks Madam / Sir,

Liberalized Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the guidelines  regarding  the  Liberalized  Remittance  Scheme (LRS)  for  ResidentIndividuals (the Scheme).

2.         On a review of the scheme, it has now been decided to reduce the existing limit of USD 200,000 per financial year to USD 75,000 per financial year (April -March) with immediate effect. Accordingly, AD Category – I banks may now allow remittance up to USD 75,000 per financial year, under the scheme, for any permitted current or capital account transaction or a combination of both. Further, the following changes / clarifications in regard to the remittances under LRS will come into effect immediately :

(i). The scheme should no longer be used for acquisition of immovable property, directly or indirectly, outside India. Therefore, AD Category-I banks may henceforth not allow any remittances under the LRS Scheme for acquisition of immovable property outside India.

(ii). The scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery etc., as hitherto.

(iii). Resident individuals have now been allowed to set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) outside India for bonafide business activities outside India within the limit of USD 75,000 with effect from August 5, 2013 and subject to the terms and conditions stipulated in Notification No.FEMA 263/RB-2013 dated August 5, 2013.

3.         Further, the limit for gift in Rupees by Resident Individuals to NRI close relatives and loans in Rupees by resident individuals to NRI close relatives in terms of A.P. (DIR Series) Circular No.17 and 18 both dated September 16, 2011 shall accordingly stand modified to USD 75,000 per financial year.

4.         All other terms and conditions mentioned in A. P. (DIR Series) Circular No. 64 dated February 4, 2004, A. P. (DIR Series) Circular No. 24 dated December 20, 2006, A. P. (DIR Series) Circular No. 51 dated May 8, 2007, A.P. (DIR Series) Circular No.36 dated April 4, 2008,  A.P. (DIR Series) Circular No.17 and 18 both dated September 16, 2011 and A.P.(DIR Series) Circular No. 106 dated May 23, 2013 shall remain unchanged.

5.         Necessary amendments to the Notification No. FEMA.1/2000-RB dated May

3,     2000,     [Foreign   Exchange   Management      (Permissible   Capital   Account Transactions) Regulations 2000] are being notified separately.

6.         AD – Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

7.         The directions contained in this Circular have been issued under Section 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C.D. Srinivasan)

Chief General Manager

Related Press Release/Notification

Aug 14, 2013        RBI announces measures to rationalise Foreign Exchange

Outflows by Resident Indians

Aug 14, 2013        Overseas Direct Investments

Download RBI Circular No.24/2013-14/181 Dated August 14, 2013 for Liberalised Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

Download RBI Circular No.24/2013-14/181 Dated  August 14, 2013 for Liberalised Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

RESERVE BANK OF INDIA Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14/181

A. P. (DIR Series) Circular No.24                                                 August 14, 2013

To

All Category-I Authorised Dealer Banks Madam / Sir,

Liberalised Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the guidelines  regarding  the  Liberalised  Remittance  Scheme (LRS)  for  ResidentIndividuals (the Scheme).

2.         On a review of the scheme, it has now been decided to reduce the existing limit of USD 200,000 per financial year to USD 75,000 per financial year (April -March) with immediate effect. Accordingly, AD Category – I banks may now allow remittance up to USD 75,000 per financial year, under the scheme, for any permitted current or capital account transaction or a combination of both. Further, the following changes / clarifications in regard to the remittances under LRS will come into effect immediately :

(i). The scheme should no longer be used for acquisition of immovable property, directly or indirectly, outside India. Therefore, AD Category-I banks may henceforth not allow any remittances under the LRS Scheme for acquisition of immovable property outside India.

(ii). The scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery etc., as hitherto.

(iii). Resident individuals have now been allowed to set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) outside India for bonafide business activities outside India within the limit of USD 75,000 with effect from August 5, 2013 and subject to the terms and conditions stipulated in Notification No.FEMA 263/RB-2013 dated August 5, 2013.

3.         Further, the limit for gift in Rupees by Resident Individuals to NRI close relatives and loans in Rupees by resident individuals to NRI close relatives in terms of A.P. (DIR Series) Circular No.17 and 18 both dated September 16, 2011 shall accordingly stand modified to USD 75,000 per financial year.

4.         All other terms and conditions mentioned in A. P. (DIR Series) Circular No. 64 dated February 4, 2004, A. P. (DIR Series) Circular No. 24 dated December 20, 2006, A. P. (DIR Series) Circular No. 51 dated May 8, 2007, A.P. (DIR Series) Circular No.36 dated April 4, 2008,  A.P. (DIR Series) Circular No.17 and 18 both dated September 16, 2011 and A.P.(DIR Series) Circular No. 106 dated May 23, 2013 shall remain unchanged.

5.         Necessary amendments to the Notification No. FEMA.1/2000-RB dated May3,     2000,     [Foreign   Exchange   Management      (Permissible   Capital   AccountTransactions) Regulations 2000] are being notified separately.

6.         AD – Category I banks may bring the contents of this circular to the notice oftheir constituents and customers concerned.

 7.         The directions contained in this Circular have been issued under Section 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C.D. Srinivasan)

Chief General Manager

Download RBI Circular No. 25/2013-14/187 Dated August 14, 2013 for All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange/ All Agencies nominated for import of gold

Download RBI Circular No. 25/2013-14/187 Dated August 14, 2013 for All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange/ All Agencies nominated for import of gold 

RBI/2013-14/187

A.P. (DIR Series) Circular No. 25                                                                 August 14, 2013

To,

All Category – I Authorised Dealer Banks

All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange/ All Agencies nominated for import of gold

Madam / Sir,

Import of Gold by Nominated Banks /Agencies/Entities

Attention of Authorised Persons is drawn to the Reserve Bank’s A.P. (DIR Series) Circular No. 15 dated July 22, 2013 on the captioned subject. As per these instructions, certain restrictions were imposed on the import of various forms of gold by nominated banks/nominated agencies/ premier or star trading houses/SEZ units/EoUs which have been permitted to import gold for use in the domestic sector.

2. Government of India and the Reserve Bank of India have been receiving several equests for clarifications on the operational aspects of the scheme of imports put in place in terms of the above circular. There have also been representations to change certain aspects of the scheme. Taking into account all these representations and in consultation with the Government of India, it has been decided to issue the following clarifications/modifications in supersession of all the earlier instructions:

a) Import of gold in the form of coins and medallions is now prohibited.

b) It shall be incumbent on all nominated banks/nominated agencies and other entities to ensure that at least one fifth, i.e., 20%, of every lot of import of gold imported to the country is  exclusively made available for the purpose of exports and the balance for domestic use. A   working example of the operations of the 20/80 scheme envisaged in terms of the present instructions is given in the Annex. This shall be monitored by customs authorities, and will be  implemented port-wise only.

c) Further, nominated banks/ nominated agencies and other entities shall make available gold for domestic use only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the Gold Deposit Scheme against full upfront payment. In other words, supply of gold in any form to the domestic users other than against full payment upfront shall not be permitted.

d) The nominated banks/agencies/refineries and other entities shall ensure that there is no front loading of imports, particularly in the first and second lots of imports. Such imports shall be linked   to   normal   quantities   of   gold   supplied   to   the   exporters   by   the   nominated banks/agencies and shall not exceed the highest quantity supplied during any one year out of last three years. The quantity thus arrived at, however, will not be imported in one or two lots only. As a thumb rule, imports of more than maximum of two months of requirements of the exporters in a lot would be considered unusual. Illustratively, if the gold supplied to exporters by a bank during the last three years is say, 30 tonnes, 40 tonnes and 60 tonnes respectively, imports in terms of this circular shall be based on highest of three i.e. 60 tonnes.

Further, import of 50 tonnes( two months export of 10 tonnes for exports and 4 times the
amount for domestic use, totalling 50 tonnes) will be considered unusual. In case of nominated banks not having a previous record of having supplied gold to the exporters they would need to seek prior approval from RBI before placing orders for import of gold for the first lot under the 20/80 scheme.

e) The 20/80 principle would also apply for the henceforth import of gold in any form/purity including gold dore, whereby 20 per cent of the gold imported shall be provided to the exporters. This will be administered and monitored at the refinery level for each consignment at the time of such imports. This will also be monitored by the customs authorities. The refinery shall make available for domestic use only to the entities engaged in jewellery business/bullion dealers and to the banks authorised to administer the Gold Deposit Scheme against full upfront payment and sale of gold against any other form of payment shall not be permitted. Further, the import of gold dore is permitted only against a licence issued by DGFT.

f) Any authorisation such as Advance Authorisation/Duty Free Import Authorization (DFIA) is to be utilised for import of gold meant for export purposes only and no diversion for domestic use shall be permitted.

3. Entities/units in the SEZ and EoUs, Premier and Star trading houses are permitted to import gold exclusively for the purpose of exports only.

4. AD Category I banks are advised to strictly ensure that foreign exchange transactions effected by / for their constituents are compliant with the above instructions. Head Offices of nominated agencies /International Banking Divisions of banks would be responsible for monitoring operations of the revised scheme taking into account transactions put through different centres. In respect of gold released for the purpose of exports, AD Category I banks will also put in place a special mechanism to monitor realization of export proceeds as per the extant regulations and any contraventions/ unusual developments in this regard should be reported forthwith to the concerned Regional Office of the Reserve Bank of India.

5.  Government  of  India  will  be  issuing  separate  instructions,  if  any,  to  the  customs authorities/DGFT to operationalise and monitor the above requirements for import of gold.

6. The above instructions will come into force with immediate effect. Authorised dealers may
please bring the contents of this circular to the notice of their constituents and customers concerned.

7. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999), and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully

(Rudra Narayan Kar)

Chief General Manager-in-Charge

Download RBI Circular No. 19 /2013-14/173 Dated August 7, 2013 For Non-Resident Deposits – Comprehensive Single Return (NRD-CSR):Submission under XBRL

Download RBI Circular No. 19 /2013-14/173 Dated August 7, 2013 For Non-Resident Deposits – Comprehensive Single Return (NRD-CSR):Submission under XBRL

RESERVE BANK OF INDIA

Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14/173

A.P. (DIR Series) Circular No. 19                                                    August 7, 2013

To,

All Banks Authorised to deal in Foreign Exchange Madam / Sir,

Non-Resident Deposits – Comprehensive Single Return (NRD-CSR):                               Submission under XBRL 

Attention of banks maintaining Non-Resident Deposits (NRD) Accounts is invited to A.P. (DIR Series) Circular No.55 dated May 9, 2007 on NRD-CSR software package being used by the banks for submission of detailed monthly data on nonresident deposits to the Reserve Bank.

2.          It has been decided to move the NRD-CSR reporting to eXtensible  Business  Reporting  Language (XBRL)  platform  to  provide  validations  for

processing requirement in respect of existing NRD schemes, improve data quality, enhance the security-level in data submission, and enable banks to use various features of XBRL-based data submission, and tracking. The existing formats of NRD-CSR have also been rationalised for reporting bank-wise consolidated data under XBRL. This would replace the existing system where banks generate the NRD-CSR DAT file from RBI-provided software and submit NRD data through e-
mail attachment to our Department of Statistics and Information Management (DSIM), Central Office (CO), on monthly basis.

3.         The  revised  NRD-CSR  format,  maturity  codes,  record  types  and  the validations checks are provided in the Annex. For monthly NRD-CSR submission on XBRL platform by nodal office of banks, the Reserve Bank has provided the following two alternatives:

i. Banks can download the RBI’s NRD-CSR template by logging to the RBI’s OnlineReporting  web-page (http://orfs.rbi.org.in) (Path:  Homepage ÆXBRL-based filing Æ (enter user name / password) Æ Download Returns Package Æ Form NRD-CSR) and use the same to generate instance document (.xml file) after entering details. The instance document can be uploaded on RBI’s XBRL page. The Reserve Bank (DSIM, CO) will provide User name and Password to all banks for NRD-CSR for this purpose. 

ii. Banks can use any publically available XBRL tool in relation with their internal database and build NRD-CSR discipline prescribed by RBI, for generation of instance document (.xml file) and upload the same on RBI’s XBRL page.

In addition, banks can also generate instance document in the prescribed format from their internal system, if it provides such flexibility.

4.         It has been decided to switch-over to the XBRL-based NRD-CSR reporting from October 2013. Accordingly, banks are required to capture the NRD-CSR data for XBRL submission from October 1, 2013 (“Go-Live” date). It has been also decided to retain the current prescription of NRD-CSR reporting on or before 10th of the month following the month to which the NRD data pertains. As such, banks may submit the XBRL-compliant NRD-CSR data for October 2013 on or before November 10, 2013. The current email-based reporting of NRD-CSR data would continue for reporting NRD data up to September 2013. The Reserve Bank would not provide any support towards the usage of legacy NRD-CSR software (v3.0) after the “Go-Live” date.

5.         To facilitate testing of the bank’s NRD-CSR data in the XBRL-based NRD-CSR   reporting,   the   Reserve   Bank   has   enabled   a   test   environment (https://125.18.33.234/orfsxbrl/customer/index.jsp)  for  use  by  reporting  banks before “Go-Live”. Banks can also download the NRD-CSR Returns Package (login with user_name / password Æ Download Returns Package Æ Form NRD-CSR). From “Help” menu of this test-site, banks can also download the Manual on XBRL-based Submission which indicates the processes for creation of bank-checker/bank-maker   by   bank-superuser   with   respective   user_name   and password, and provides other information required for the reporting system.

6.         Reporting banks would be shortly receiving user_name and password along with bank_code for login to the test-site in their respective email-ids, through which they submit NRD-CSR data to RBI (DSIM,CO) under the existing system. In case of any change/difficulties, concerned banks may send a request to the email for assistance.

7.         Further, the Reserve Bank would also provide training on “NRD-CSRsubmission under XBRL” to the officers/software personnel of the reporting banks before “Go-Live”. Separate communication is being sent to reporting banks for this purpose. For any assistance during testing or live periods, banks may contact XBRL helpdesk (‘Contact us’ menu in the homepage of the test-site before the “Go-Live” date and on the ORFS site subsequently).

8.         The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

 Yours faithfully,

(C.D.Srinivasan)

Chief General Manager

Download RBI Circular No.28/2013-14/191 Dated August 19, 2013 for Foreign Investments in Asset Reconstruction Companies (ARC)

Download  RBI Circular No.28/2013-14/191  Dated August 19, 2013 for Foreign Investments in Asset Reconstruction Companies (ARC) 

RESERVE BANK OF INDIA Foreign Exchange Department 

                Central Office

Mumbai – 400 001

RBI/2013-14/191

A.P. (DIR Series) Circular No.28                                                                August 19, 2013

To

All Banks Authorised to Deal in Foreign Exchange Madam/Sir,

Foreign Investments in Asset Reconstruction Companies (ARC)

Attention of Authorized Dealers is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank of India vide Notification No.20 dated 3rd May 2000 as amended from time to time and A.P.(DIR Series) Circular N0.16 dated November 11, 2005.

2.  In terms of the aforesaid circular :

(a)  Foreign  Direct  Investment   (FDI)  upto     49%  in  the  equity  capital  of  AssetReconstruction Companies (ARCs)  was permitted subject to certain conditions.However, investment by Foreign Institutional Investors (FIIs) in the equity capital of ARCs was not permitted; and

(b) general permission was granted to Foreign Institutional Investors (FIIs) to invest in Security Receipts (SRs) upto 49 per cent of each tranche of scheme of Security Receipts subject to condition that investment of a single FII in each tranche of scheme of SRs shall not exceed 10 per cent of the issue.

3.          A review of the policy was undertaken and it has been decided as under:

i.  The ceiling for FDI in ARCs has been increased from 49% to 74% subject to the condition that no sponsor may hold more than 50% of the shareholding in an ARC either by way of FDI or by routing through an FII. The foreign investment in ARCs would need to comply with the FDI policy in terms of entry route conditionality and sectoral caps.

ii.    The foreign investment limit of 74% in ARC would be a combined limit of FDI and FII. Hence, the prohibition on investment by FII in ARCs will be removed. The total shareholding of an individual FII shall not exceed 10% of the total paid-up capital.

iii.  The limit of FII investment in SRs may be enhanced from 49% to 74% of the paid up value of each tranche of scheme of Security Receipts issued by the  Asset Reconstruction Companies.  Further, the individual limit of 10% for investment of a single FII in each tranche of SRs issued by ARCs may be dispensed with. Such investment should be within the FII limit on corporate bonds prescribed from time to time, and sectoral caps under the extant FDI Regulations should be complied with.

4.         A copy of Press Release dated December 21, 2012 issued in this regard by Department of Financial Services, Ministry of Finance Government of India is as per Annex.

5.         Reserve Bank of India has since amended the Regulations and notified vide Notification No. FEMA.254/2013-RB dated January 07, 2013 vide G.S.R.No.344(E) dated May 29, 2013.

 

6.         Authorised Dealer banks may bring the contents of this circular to the notice of their constituents and customers concerned.

7.         The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)

Chief General Manager-in-Charge

ANNEX TO A.P.(DIR SERIES) 

CIRCULAR NO.28 OF 19.08.2013]

F.No.44/17/2004-BO.II

Government of India
Ministry of Finance

Department of Financial Services

 

Jeevan Deep Building, 3rd Floor 10, Parliament Street, New Delhi-110 001
Dated the 21st December, 2012

PRESS RELEASE

 

REVIEW OF FOREIGN INVESTMENT POLICY FOR
ASSETS RECONSTRUCTION SECTOR*

Government had permitted Foreign Direct Investment (FDI) in the equity capital of
Asset  Reconstruction  Company (ARCs)  upto 49%  vide  Press  Release  dated

08.11.2005.  Further,   on   09.11.2005,  the  Government   permitted  the  Foreign Institutional Investors (FIIs) registered with the Securities and Exchange Board of India (SEBI) to invest in Security Receipts (SRs) issued by ARCs upto 49% of each tranche of scheme of SRs. The ceilings of FDI and FII have been reviewed in consultation  with  the  stakeholders  and  the  sector  regulators.  Accordingly,  the Government has decided that

i.        The ceiling for FDI in ARCs has been increased from 49% to 74% subject to the condition that no sponsor may hold more than 50% of the shareholding in an ARC either by way of FDI or by routing through an FII. The foreign investment in ARCs  would  need  to  comply  with  the  FDI  policy  in  terms  of  entry  route conditionality and sectoral caps.

ii.        The foreign investment limit of 74% in ARC would be a combined limit of FDI and FII. Hence, the prohibition on investment by FII in ARCs will be removed. The total shareholding of an individual FII shall not exceed 10% of the total paid-up capital.

iii.        The limit of FII investment in SRs may be enhanced from 49% to 74%. Further, the individual limit of 10% for investment of a single FII in each tranche of SRs issued by ARCs may be dispensed with. Such investment should be within the FII limit on corporate bonds prescribed from time to time, and sectoral caps under the extant FDI Regulations should be complied with.

2.         The necessary notification / circular under FEMA are being brought out separately by the Reserve Bank of India.

3.         The necessary notification under SEBI (FII) Regulations is being brought out separately by the Securities and Exchange Board of India.

Sd/-

21-12-2012

(Alok Nigam)

Joint Secretary to the Government of India

 Copy forwarded to the Press Information Officer, Press Information Bureau for giving wide publicity to the above Press Release.

*Companies registered / to be registered with RBI as Securitization Companies / Reconstructions Companies under the Securitization and Reconstruction of Act) for the purpose of carrying on / commencing the business of asset reconstruction.

Download RBI/2013-14 /178 Circular No. 22/2013-14 /178 Dated August 12, 2013 for Exim Bank's Line of Credit of USD 300 million to the Government of the Federal Democratic Republic of Ethiopia

Download RBI/2013-14 /178 Circular No. 22/2013-14 /178 Dated August 12, 2013 for Exim Bank’s Line of Credit of USD 300 million to the Government of the Federal Democratic Republic of Ethiopia

RESERVE BANK OF INDIA Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14 /178

A.P. (DIR Series) Circular No. 22                                                         August 12, 2013

To,

All Category – I Authorised Dealer Banks Madam / Sir,

 

Exim Bank’s Line of Credit of USD 300 million to the Government of the Federal Democratic Republic of Ethiopia

Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June 13, 2013 with the Government of the Federal Democratic Republic of Ethiopia, for making available to the latter, a Line of Credit (LOC) of USD 300 million (USD Three hundred million only) for financing eligible goods, including machinery and equipment and services(including preparation of the Detailed Project Report) including consultancy services from India for the purpose of financing new Ethio-Djibouti Railway Line [ the Asaita- Tadjourah portion] Project in Republic of Ethiopia/ Republic of Djibouti. The goods, servic es, machinery and equipment  including  consultancy  services  from  India  for  exports  under  this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of   the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 percent goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.

2.      The Credit Agreement under the LOC is effective from July 15, 2013 and the date of execution of Agreement is June 13, 2013. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (June 12, 2019) from the execution date of the Credit Agreement in the case of supply contracts.

3.          Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.

4.            No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.

5.         AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005  or log on to www.eximbankindia.in/.

6.           The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C. D. Srinivasan)

Chief General Manager

Download RBI Circular No.29/2013-14/192 Dated August 20, 2013 for Investments by Non-resident Indians (NRIs) under Portfolio Investment Scheme (PIS) Liberalisation of Policy

Download RBI Circular No.29/2013-14/192 Dated August 20, 2013 for Investments by Non-resident Indians (NRIs) under Portfolio Investment Scheme (PIS) Liberalisation of Policy

RESERVE BANK OF INDIA Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14/192

A. P. (DIR Series) Circular No.29                                                               August 20, 2013

To

All Category-I Authorised Dealer Banks Madam / Sir,

Investments by Non-resident Indians (NRIs) under Portfolio Investment Scheme (PIS) Liberalisation of Policy

Attention of Authorised Dealers Category-I (AD Category – I) banks is invited to Schedule 3 of 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 (hereinafter referred to as Notification No. FEMA 20), as amended from time to time in terms of which, NRIs can invest under PIS   on  repatriation   and/or   non-repatriation  basis   in  shares   and  convertible debentures of listed Indian companies on a recognized stock exchange in India through   a   registered   stock   broker.   Further,   NRIs   may   purchase   and   sell shares/convertible debentures under the PIS through a branch designated by an Authorised Dealer for the purpose and duly approved by the Reserve Bank of India.

2.         As a measure of further liberalisation, it has been decided toi)   allot Unique Code number only to Link office of the AD Category – I bank; and

ii)  dispense with the allotment of Unique Code number to each branch       designated by  that AD Category – I bank administering the Scheme. Accordingly, henceforth in accordance with the policy approved by the Board, AD Category – I bank shall be free to permit its branches to  administer  the  Portfolio  Investment  Scheme  for  NRIs  subject  to  the following:

a)   the  AD Category  – I bank  while  granting  permission to NRI   for

investment under PIS shall allow them to operate the scheme  as per the terms and conditions are as Annex-A;

b)   the designated link office  shall continue to report on a daily basis PIStransactions undertaken on behalf of NRIs for their entire bank to the Reserve Bank under the Online Report Filing System (ORFS) in form LEC     (NRI)          as   per   present   practice   in   vogue   web   site (https://secweb.rbi.org.in/ORFSMainWeb/Login.jsp).;

 

c)   the AD Category – I bank shall provide to the Reserve Bank the complete  contact   details   of  such  link   office  in   advance  before commencing operations;

d)   the AD Category – I bank shall sensitise the branches administering the Scheme  to ensure that NRIs are not allowed to invest in any Indian company which is engaged or proposes to engage in the business of chit fund, Nidhi company, agricultural or plantation activities, real estate business (does not include development of townships, construction of residential /  commercial  premises,  roads  or  bridges,  educational institutions, recreational facilities, city and regional level infrastructure, townships),  construction  of  farm  houses,  manufacturing  of  cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes and trading in Transferable Development Rights (TDRs) and in sectors/ activities as specified in terms of Notification No. FEMA.1/2000-RBdated May 3, 2000, as amended from time to time; and

e) ensure compliance with instructions  issued through A.D.(M.A. Series)       Circulars, EC.CO.FID circulars annexed as Annex-B and the regulatory requirements under FEMA, 1999. It  may  be  noted  that OverseasCorporate Bodies( OCBs) have been derecognized as an eligible ‘class of investor’ under various routes/scheme available  under the extant Foreign Exchange Management  Regulations in terms of the Foreign Exchange   Management [withdrawal   of   General   Permission   toOverseas Corporate Bodies( OCBs)] Regulations, 2003 notified vide Notification No. FEMA.101/2003-RB dated October 3, 2003.

3.           AD Category – I banks may bring the contents of the circular to the notic e of their customers/constituents concerned.

4.           Reserve  Bank  has  since  amended  the  Regulations  and  notified  vide Notification No. FEMA.261/2013-RB dated February 27, 2013 vide G.S.R. 515(E) dated July 30, 2013.

5.           The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and re without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)

Chief General Manager-in-Charge

Download RBI Circular No. 18/2013-14/169 Dated August 1, 2013 for Risk Management and Inter-bank Dealings

Download RBI Circular No. 18/2013-14/169 Dated August 1, 2013 for Risk Management and Inter-bank Dealings

RESERVE BANK OF INDIA Foreign Exchange Department
Central Office

Mumbai – 400 001

RBI/2013-14/169

A.P. (DIR Series) Circular No. 18                                                    August 1, 2013

To,

All Category – I Authorised Dealer Banks Madam / Sir,

Risk Management and Inter-bank Dealings

Attention of Authorised Dealers Category – I (AD Category I) banks is invited to AP (DIR) Circular No. 121 dated June 26, 2013 wherein it was clarified that if an FII wishes to hedge the Rupee exposure of one of its sub-account holders, it should be done on the basis of a mandate from the sub-account holder for the purpose and that the AD bank should verify the same along with the eligibility of the contract vis-a-vis the market value of the securities held in the concerned sub-account.

2. In this context, the Reserve Bank has been receiving enquiries as to the applicability of the clarifications issued in the aforesaid circular to Participatory Notes(PN) /Overseas  Derivative  Instruments(ODI)  issued  by  the  FIIs.  It  is therefore clarified that if an FII wishes to enter into a hedge contract for the exposure relating to that part of the securities held by it against which it has issued any PN/ODI, it must have a mandate from the PN/ODI holder for the purpose. Further, while AD Category bank is expected to verify such mandates, in cases where this is rendered difficult, they may obtain a declaration from the FII regarding the nature/structure of the PN/ODI establishing the need for a hedge operation  and  that  such  operations  are  being  undertaken  against  specific mandates obtained from their clients.

3. AD category banks may bring the content of this circular to the notice of their constituents.

4. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions /approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)

Chief General Manager-in-Charge