Transcription of Checklist for Foreign Direct Investment (FDI Report) S.No ...
1 1 Checklist for Foreign Direct Investment ( fdi report ) ParticularsStatus1. Check whether company is allowed to raise FDI under Automatic Route. Check sectorial caps. 2. In case of approval route, check whether the appropriate approval is received from FIPB/RBI before the receipt of FDI. 3. Check whether the Investor is a resident of or entity incorporated in Bangladesh / Pakistan. No Investment from Pakistan is allowed. 4. Check whether the FIPB prior approval is taken for Investment from resident of or entity incorporated in Bangladesh. 5. Check whether the FDI has come through:- By inward remittance through normal banking channels; or By debit to NRE/FCNR account of the person concerned maintained with an authorised dealer/authorised. 6. Check whether the FDI, if from resident in Nepal and Bhutan as well as citizens of Nepal or Bhutan, is in Foreign Currency.
2 7. Check whether the Instrument proposed to be issued are only the following:- Equity shares. Fully and mandatorily Convertible Debentures. Fully and mandatorily Convertible Preference Shares. 8. Check whether the valuation is done as per FEMA 20/2000 , , as per CCI Guidelines 9. Check whether FDI is in a SSI and if so only up to 24% of the paid up capital is allowed. Allotment in excess should be made only if the unit :- Given up its small scale unit status. Is not engaged or does not propose to engage in manufacture of items reserved for SSI. Small scale sector complies with the sectoral caps specified in Annex -1 of the Master Circular. It is clarified by RBI that the Indian company / SSI Unit would be reckoned as having given up its SSI status, if the Investment in plant and machinery exceeds the limits prescribed under the Micro, Small and Medium 2 Enterprises (MSME) Development Act, Check Whether FIRC copies have been Check whether the proposed dividend rate on Preference Share does not exceed 300 basis point above prevailing SBI Lending rate.
3 12. Check whether the advance reporting form is filed within 30 days of receipt of FDI along with KYC form. 13. Check whether the equity Instruments are issuedwithin 180 days from the date of receipt of the inward remittance or by debit to the NRE/FCNR (B) account. 14. In case of debenture issue check if articles allow issue of debentures. 15. Check whether Press Note 2 /2009 and 4 of 2009, if applicable are followed. 16. Check whether FEMA 24/2000 is followed for Investment in partnership firms or proprietary concern regulated under Section 2(h) of Section 47 of FEMA 17. Check whether any Press Notes have been issued and amendements are pending in the FEMA. Note:- 1. Please mention the NIC Code in fdi report correctly. 2. KYC report shall be stamped by the authorised dealer. 3. Ensure that every page of the form FC_GPR is signed and stamped Prepared by CS.
4 Prashant Jain. Law as on 10th June, 2010 **
