Compliance Guide For Foreign Investment In India Through Share Capital (1) - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

Compliance Guide For Foreign Investment In India Through Share Capital (1)

Description:

Foreign investment is one of the key drivers of the economy in India. Foreign Institutional Investors, Foreign Portfolio Investors, Venture Capitalists as well as NRIs are allowed to hold shares in Indian businesses. read this PPT for more information. – PowerPoint PPT presentation

Number of Views:3
Date added: 11 September 2019
Slides: 10
Provided by: michaelbrownyg
Category: Other

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Compliance Guide For Foreign Investment In India Through Share Capital (1)


1
Compliance Guide For Foreign Investment In India
Through Share Capital
2
Introduction
Foreign investment is one of the key drivers of
the economy in India. Foreign Institutional
Investors, Foreign Portfolio Investors, Venture
Capitalists as well as NRIs are allowed to hold
shares in Indian businesses. All such foreign
direct investment is subject to a few rules and
regulations that all associated entities have to
comply with. Lets go through the steps needed to
ensure adherence to all applicable laws.
3
Submit The Advance Reporting Form
The form needs to be filled with the RBI within
30 days of receiving the money for shares. PAN
and other basic details of the investee and
investor are required. The form must be filled
manually on the central banks website.
4
Handling The Share Application Money
The money received in lieu of shares must be
kept in a separate bank account. The funds
cannot be used unless shares have been issued to
the investors. Promoters and directors can be
penalized for violating this condition.
5
Time-period For Allotment Of Shares
RBI states that shares must be allotted within
180 days of receiving the money. The Ministry
Of Corporate Affairs stipulates that stock must
be issued within 60 days. Convene a board
meeting to allot stocks to the investors.
6
Filing The Foreign Investment Report
Submit the report through the Foreign Currency
General Purchase Register (FCGPR) form. The
report needs to be filed within 30 days from the
date of issuing of shares. The form is
submitted to the RBI and contains information
about the share capital investment.
7
Submitting Another Form With The MCA
Submit Form PAS-3 with MCA within 30 days of
the allotment of the stock to the investors.
This document contains details about the capital
and debt structure of the company. The form
must be signed by a chartered accountant or a
company secretary.
8
Other Compliance Requirements
Issue the share certificate within 60 days of
allotment of the stock. Pay the stamp duty on
the stocks according to the rate in your
jurisdiction. Make the entries about the funds
in relevant account books.
9
Contact Us
We are always happy to make valuable new
contacts.
www.ahlawatassociates.com
admin_at_ahlawatasscociates.in
A-33, Lower Ground Floor, Defence Colony, New
Delhi 110024, India.
011-41023400
About PowerShow.com