tulsi gupta (accounting services) (38 Points)
30 November 2010Dear All,
Can some one provide me the definition of Authorised Dealer Bank in case of FDI Transaction i.e amount received from NRI through his NRE/ NRI account in india.
Thanks in Advance
Tulsi Gupta
CA Nilesh Sodhani
(CA)
(411 Points)
Replied 04 December 2010
As per Chapter 2 of Circular 1 of 2010 of Consolidated FDI Policy effictive from April 1, 2010 issued by Department of Industrial Policy and Promotion, Authorized Dealer means a person authorized as an authorized dealer under subsection (1) of section 10 of FEMA.
And as per Section 10(1) of FEMA,
The Reserve Bank may, on an application made to it in this behalf, authorize any person to be known as authorized person to deal in foreign exchange or in foreign securities, as an authorized dealer, money changer or off-shore banking unit or in any other manner as it deems fit.
Aman Jain
(Company Secretary in Practice)
(165 Points)
Replied 04 December 2010
Dear Tulsi,
In general which bank converts the currency called AD Bank for company.(should be authorised by RBI according to FEMA)
NRI who operates his account through NRE bank account, in this case AD bank should be the bank which converts the currency. if Bank which hold NRI's NRE account convert the currency then in this case said bank is the AD bank but this bank will not issue FIRC.
You can request to bank for issuing a letter which contained remittance information.
Other views are solicited.
CAclubindia
