Checklist For Overseas Direct Investment

CHECKLIST FOR OVERSEAS DIRECT INVESTMENT APPLICATION PART I 1.
The entire set of forms should be sent to the nodal branch within 1
month of the remittance. The Authorised Dealer branch is required to submit the same to the Nodal branch i.e. Overseas branch, Mumbai within two months of receiving the application from the customer. Please note that any delay in the reporting by more than one month by the customer and by three months by the Authorised Dealer branch, the same is to be supported by an explanation letter by the customer and or branch whoever has been responsible citing reason for the delay in reporting. This is RBIs mandatory requirement under the FEMA Act. After sending one remittance towards ODI no further remittance is to be made by the customer and AD branch till the UIN No. is received from Reserve Bank of India.
2. Purpose of investment should be clearly mentioned i.e. Joint
Venture (JV) or Whole Owned Subsidiary (WOS).

3. Number of Indian Promoters should be specified. Promoters
should not be Indian resident individuals investing in personal capacity.

4. Number of Foreign Promoters should be specified. If promoter is
an individual he should be a foreign national or a NRI and that the funds utilized are out of his foreign currency resources outside India.
5. The total capital structure should be outlined even if it is an
investment in an existing project.
6. 3 Digit Activity code/ NIC code alongwith with sub-code (eg.
314.6) is to be correctly filled in. These codes are found under the head : NIC Codes 1987 available on internet website of Commerce Ministry. The websites address is: http://siadipp.nic.in/policy/nic/nic.htm. Non specific codes like miscellaneous/ others etc are not acceptable. The Overseas Investment is also not permitted for investment in Real Estate or Banking Business.
7. In case the investment is in financial sector, the Indian party
needs to be a regulated financial services entity and has complied with Regulation 7 of FEMA 120.
8. In case of Special Purpose Vehicle (SPV), confirmation of
compliance with Reg. 7 of FEMA 120 is must alongwith purpose of SPV.

9. Attach a Neat photocopy of the companys Pan Card with the
details such as name and number clearly visible. If possible also attach a copy of the PAN Card allotment letter issued by the Income Tax authority.
10. Specify the Financial Accounting Year of the JV/WOS and
other financial particulars correctly.

11. Loan/ Guarantee can be offered to an Indian venture overseas
by the Indian party only if it has an Equity holding in the venture. Therefore the first remittance should compulsorily contain Equity Capital only.
12. Documentary proof of investment abroad should be submitted
within 6 months from date of remittance.

13. Authorised Dealers are permitted to allow further Overseas
Direct Investment remittances only after getting the UIN No. from Reserve Bank of India. PART II
1. Specify the UIN given by RBI as well as Name of Indian Company.
2. Specify the Foreign currency.

3. Make sure that amount entered is in Foreign Currency (FCY) and is in
000s. The amount remitted should not be approximated.

4. Specify the Investment Method i.e., Cash Remittance, ADR etc and
Investment Category i.e. Loan, Equity etc.

5. Specify the correct date of Remittance. This is important in case of Equity.
The same should be reflected in the Companys books of records. 6. Please do not send duplicate copies of Part II unless specified.
7. In case of multiple remittances of the same amount on the same day, the
Authorised Dealer branch needs to attach a covering letter stating so.

8. For Guarantees, specify the Issue date, Validity period, Expiry date and
Amount of Guarantee. The Guarantees cannot be open ended. Also the type of Guarantees should be specific i.e. either Corporate or Personal.
9. The ODI application forwarding branch official must put his Signature and
Branch Stamp along with his Specimen Signature No. when forwarding the application.
10. The Authorised Dealer branch is responsible for maintaining a Register of
Transactions reported UIN-wise and Date-wise. It will not be possible for Nodal branch to give details when asked by the Authorised Dealer branch.
PART III - ANNUAL PERFORMANCE REPORT- (APR)

1. The Authorized Dealer/ Reporting Branch should keep the Annual Reports
of the Parent Company as well as each JV/WOS, whose UIN is generated for their record.
2. A.Ds. are required to submit APR Part - III annually in the absence of which
RBI deactivates the UIN due to which no further transactions can take place.
3. The application should be sent within 1 month of finalization of Annual
Reports to enable us i.e. Nodal branch to report within the time frame specified.
4. The ODI Part III should be verified by the A.D. branch officials for the
following information :(a) Specify the accurate Accounting Year of the JV/WOS. (b) The date of Annual Performance Report (APR) should be clearly mentioned. (c) The date of finalization of (APR) should be specified. (d) Kindly mention the Currency used for reporting. (e) It must be in one Currency only.
5. Kindly forward us the following information on a separate sheet regarding investment in stepdown subsidiaries.(a) Major Activity and (3 digits with sub-code) NIC codes-1987 of the overseas entity. (b) Currency (c) Country (d) Type of investment - whether JV or WOS. (e) Name of JV/WOS (f) Amount of investment OUR OVERSEAS BRANCH, MUMBAI HAS IDENTIFIED FOLLOWING STAFF MEMBERS WHO WOULD ALWAYS BE PLEASED TO HELP CUSTOMERS AND BRANCHES IN CASE OF ANY DIFFICULTY IN FILLING THE FORMS. THEIR CONTACT NOS. AND E-MAIL IDs ARE AS UNDER :1) Shri Anil C. Palan (Chief Manager IBD) M - 9930009521 (anil.palan@sbi.co.in) 2) Shri Sachin Neswankar (Dy. Manager ODI) M 9423057251 (s.neswankar@sbi.co.in) 3) Smt. Sarita DSouza (Spl. Assistant ODI) O 22179792 (sarita.dsouza@sbi.co.in) We request the branches to invariably give the branch contact persons names, contact nos. and e-mail id so as to communicate without loss of time.

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CHECKLIST FOR OVERSEAS DIRECT INVESTMENT APPLICATION PART I 1.

Venture (JV) or Whole Owned Subsidiary (WOS).

should not be Indian resident individuals investing in personal capacity.

investment in an existing project.

6. 3 Digit Activity code/ NIC code alongwith with sub-code (eg.

compliance with Reg. 7 of FEMA 120 is must alongwith purpose of SPV.

other financial particulars correctly.

12. Documentary proof of investment abroad should be submitted

within 6 months from date of remittance.

2. Specify the Foreign currency.

000s. The amount remitted should not be approximated.

Investment Category i.e. Loan, Equity etc.

Authorised Dealer branch needs to attach a covering letter stating so.

PART III - ANNUAL PERFORMANCE REPORT- (APR)

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