The
Reserve Bank of India, today placed on its website for public comments, draft
format for reporting foreign direct investments (FDIs). In
the revised form the class of investors has been broadened to include several
new entities viz., foreign nationals, foreign companies, foreign institutional
investors (FIIs), foreign venture capital investors (FVCIs) registered with SEBI,
foreign trusts, private equity and other funds, pension/ provident funds, partnership
/ proprietorship firms, financial institutions, NRIs / PIOs. Secondly, the details
of investment received in units of venture capital funds from FVCIs are proposed
to be separately captured. Thirdly, Part B of the form has been modified so as
to capture breakup of the details of foreign investor class. The date of filing
of Part B of the form has been extended from June 30 of every year to July 31. The
Reserve Bank has invited feedback from all interested stakeholders on the draft
format of FC-GPR.
The feedback may be sent to the Chief General Manager, Foreign Exchange Department,
Reserve Bank of India, 11th Floor, Shahid Bhagat Singh Road, Mumbai – 400 001
on or before March 31, 2008. The feedback may also be sent by fax (022-22610623/30)
or by email It
may be noted that Foreign Direct Investments (FDIs) in India are permitted under
the automatic and government/approval route. An Indian company issuing shares
and convertible debentures to non-residents under automatic and government / approval
routes is required to submit the details of the investment in a two-stage reporting
procedure. In the first stage, receipt of funds has to be reported to the Reserve
Bank of India within 30 days of receipt. In the second stage, the company has
to file form FC-GPR with the Reserve Bank within 30 days from the date of issue
of shares / convertible debentures. In
order to capture the details of FDI in a more comprehensive manner, form FC-GPR
was revised in April 2007, in terms of which the AD Category – I bank in India
receiving foreign remittance for issue of shares was required to obtain a Know
Your Customer (KYC) report in respect of the foreign investor from the overseas
bank remitting the amount. In the wake of the recent policy changes in foreign
investment and also taking into account the suggestions and feedback received
from various entities, form FC-GPR has now been further modified. Alpana
Killawala Chief General Manager Press Release: 2007-2008/1203 |
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