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Funds on repatriable basis

Others 1198 views 3 replies

Mani Jain

company secretary

38 Points Joined October 2008

Hi friends

Ive just joined a Co in which Fc-GPR has been filed for allottment of shares to NRI. Now a letter is received by us for submission of further documents. Can anyone tell me from where can i find that the advance received in foreign currency against the equity issued is on repatriable basis or on non-repatriable basis.

please help.

Thanks

Mani

Replies (3)

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Joined September 2007

The applicant would have mentioned it.

Kumar

Legal Consultant

358 Points Joined September 2007

Dear Mani,

Investment by NRI is generally on non-repatriable basis under FDI poilcy.

Please check your comapny details if there is any approval from the RBI or FIPB.

Regards,

Juzer Sadikot

CA - innovative solutions for Imports an

1309 Points Joined November 2008

Dear Mani,

Under Automatic Route, the funds must be transferred to Company

(i) by inward remittance through normal banking channels, or

(ii) out of the balances held in NRE/FCNR account of the person concerned.

In both the case the investment so made is repatriable.

You can get FIRC (Foreign Inward Remittance Certificate) as document or proof. Same will be reported to RBI by your Authorised Dealer (Bank) mentioning the purpose of Funds remitted to India as FDI and Sector of FDI.

Regards