Whether an overseas branch of an Indian Company borrow funds abroad either by an overseas branch of an indian bank or by a foreign bank or by any other person ??
Any approvals required ???
2 Replies
vivek
(CS)
(751 Points)
Replied 12 July 2010
Upto my understanding there must not be requiremment of any approval from RBI bcoz the money has been borrowed Outside India and utilised outside india in such case there should not be any requirement of RBI approval and FEMA will not be attracted so as the case when PRI goes outside India and earns some amount over there and spend the same outside India there is no requirement of approval from RBI.
Other's views solicited.
Paras Savla
(CA)
(21 Points)
Replied 22 July 2010
As per the sec 2(v)(iv) such branch is resident in India. FEMA applies to every person who is resident in India and accordingly I believe ECB policy would be applicable
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