foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible
radheyshyam (partener) (33 Points)
12 December 2009foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible
Ashis Mahapatra
(Consultant-Tax & FEMA/FDI)
(183 Points)
Replied 13 December 2009
| Originally posted by :radheyshyam | ||
| " | foreign parent company provided 50lacs loans to its 100 % indian subsidary .now i want to know whether there is any compliance with rbi regulation or not, kinly provide as soon as possible | " |
Yes there are some formalities for obtaining Loan from foreign collaberater . Prior Intimation & compliances required to RBI and some cases prior APPROVAL required dependind upon some parameters like Enduse, Borrowing limit, cost ceilling,Sector etc subject to some restrictions.
Pls read the ECB guidelines attached herewith.Also read the new ECB circular placed in CAclub homepage
Hitesh
(Lawyer (Banking Exchange Control FDI ODI Company law Commercial contracts Property matters))
(22 Points)
Replied 13 December 2009
It would be relevant to note the provisions of, inter alia, the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
Kind regards,
Hitesh
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