Government of India
Ministry of Industry

As per Press Note No. 7 of 1999 series, henceforth there would be no need for obtaining prior approval of FIPB / Government for increase in the amount of foreign equity within the percentage of foreign equity already approved in which the original project cost was up to Rs. 600 crore for proposals for financial restructuring in the following cases :

a. in the case of joint venture companies, proposals for increase in the amount of non resident equity within the approved percentage of non resident equity and

b. in case of wholly owned subsidiaries or holding companies of foreign companies in India proposals relating to enhancement of paid up capital.

2. It has been decided that a company wanting to infuse additional funds as equity through FDI may file a formal intimation of intent for inward remittance of FDI to SIA in the Ministry of Industry in the enclosed proforma and obtain an acknowledgement of receipt of such intention from the Entrepreneurial Assistance Unit of SIA in Udyog Bhavan, Ministry of Industry.

3. After filing the intimation of intent for inward remittance of FDI, the company may bring in funds and issue shares against the amount of FDI and file intimation to SIA within thirty days of receipt of funds. Allotment of shares in terms of Press Note No. 7 of 1999 should be intimated to SIA within 30 days of such allotment.

4. Based on the intimation of actual remittance, SIA shall issue a formal amendment which shall be utilised by the company to cover the provisions of FERA under RBI notification FERA 180/98 RB dated 13.1.98 under which the need for prior approval for inviting investment from foreign collaborators has been dispensed with.

This is for general information of investors.

F. No. 7(10)/99-IP                                                                                                               dated : 31^st May, 1999

Copy forwarded to the Press Information Officer, Press Information Bureau, for giving wide publicity to the above Press Release.

1. PS to IM

2. Sr. PPS to Secretary (IPP)

3. PS to AS & FA

4. PS to JS(PK) / JS(AK)

5. All Directors / Deputy Secretaries

6. Shri Sanjay Chavre, DO, for putting it on the Internet.

7. PR & CO

8. SO - FC I / FC II / IP / NRI-EOU / LC / PAB

 

 

Under Secretary to the Govt. Of India

FORM FC - INCREASE IN FOREIGN EQUITY

(as per Press Note 7 of 1999 dated 1^st April 1999)

1. APPLICATION DATE

2. NAME AND ADDRESS OF THE PROMOTER / INDUSTRIAL UNDERTAKING / COMPANY (IN BLOCK LETTERS)

Name of the promoter /
industrial undertaking

Postal Address

Pin Code

Telephone                                                Telex

Fax Cable

E Mail

3. LOCATION

Address

District

State

Pin Code

Telephone

Fax

E mail

4. PARTICULARS OF THE EXISTING APPROVAL OBTAINED FROM SIA / FIPB

a. FC Approval number

b. Date

5. EXISTING ACTIVITIES OF THE COMPANY (AS PER NIC CODE 1987)

6. IMPLEMENTATION STATUS

7. CAPITAL STRUCTURE

i. Capital structure of existing Indian company (in rupees) and proposed capital structure if revision is sought

                                    Equity                      Preference

a. Authorised

b. Subscribed

c. Paid up

II. Pattern of share holding in paid up capital (in rupees)

                                                    EXISTING                              PROPOSED

                                                    Equity %                                  Equity %

a. Foreign holding

                                                    Preference share                        Percentage

b. Non resident Indian Individual Holding / OCB holding

                                                    Equity %                                      Equity %

i. Repatriable

                                                    Preference share                          Percentage

                                                    Equity %                                        Equity %

ii. Non repatriable

                                                    Preference share                              Percentage

                                                    Equity %                                          Equity %

c. Resident Holding

                                                    Preference share                              Percentage

d. Total II {(a+b(i+ii)+c)}

Equity

Preference

8. FINANCIAL COLLABORATOR

Name_____________________________________________

Address___________________________________________

__________________________________________________

Country______________________

9. Please indicate the regional office of RBI to whom a copy of the endorsement is to be sent.

DECLARATION

I / We hereby certify that the above statements are true and correct to the best of my / our knowledge and belief.

Signature of applicant

Name in block letters

Designation of the signatory

Place

Date