|Investment in Sick Industrial Units
NRIs/OCBs will be permitted by the Reserve Bank to undertake revival of sick industrial units by making bulk investment in them either by way of purchase of equity shares from existing shareholders or in the form of subscription of new equity issues of the sick units on the following basis. The bulk investment can be made on private placement basis up to 100% of the equity capital of the sick company with full benefits of repatriation of capital invested and income earned thereon. Issue/transfer of equity shares should be approved by the existing shareholders of the company through a special resolution for the purpose of investment under the scheme, as the company should be declared a sick or there should be declared a sick or there should be a rehabilitation programmed approved by the public financial institution/commercial bank or a consortium of banks or by the Board for Industrial and Financial Reconstruction (BIFR). Application for permissions for issue/transfer of equity shares to non-residents should be made by the concerned Indian company in Form RSU to the Central Office of Reserve Bank together with the particulars/documents specified in the application form.
Deposits with Companies
NRIs and OCBs will be permitted to place funds in fixed deposits with public limited companies in India (including Government undertakings with limited liability) with full repatriation benefits for a period of three years.
The total amount of fixed deposits permitted to be accepted will be stipulated by the Reserve Bank in individual cases. The application for permission to accept deposits from non-residents with repatriation rights may be made by the Indian company through its bankers to the concerned office of the Reserve Bank under whose jurisdiction its head/registered office is situated, giving details of the deposit scheme.
It is not necessary for non-resident depositors to seek separate permission from the Reserve Bank in this regard. The Reserve Bank will grant permission to the bank branch nominated by the company for accepting deposits.
While granting permission, the Reserve Bank will authorise the branch to allow remittance of interest and maturity proceeds of deposits or credit thereof to the depositorís NRE/FCNR account.
|Investment in New Issues of Indian Companies under 24% Scheme
NRIs/OCBs are permitted to subscribe to new issue of equity shares/convertible debentures of existing or new companies (both private and public limited) engaged / proposing to engage in any activity including finance, hire purchase, leasing, trading or other services etc (except agricultural/plantation activities and real estate business) with repatriation benefits up to 24% of the new issue of the concerned Indian company. Indian companies seeking investment from NRIs/OCBs under the scheme and satisfying the conditions laid down by the RBI may issue equity share/convertible debentures to NRIs/OCBs without prior approval of the Reserve Bank and file a declaration in Form ISD together with the required documents with the concerned Regional Office is situated, within 30 days form the date of issue of shares / convertible debentures. Accordingly, NRIs/OCBs who have been issued shares / convertible debentures would not need any specific approval.
Investment in Priority Industries under 100% Scheme
NRIs/OCBs are permitted to invest in priority industries and in Indian companies primarily engaged in export trading activity, with full repatriation benefits up to 100% of the new issue of shares. Indian companies seeking investment from NRSs/OCBs, without prior approval of the Reserve Bank and file a declaration in form ISD(R) together with the required documents with the concerned Regional Office of the Reserve Bank, under whose jurisdiction their registered office is situated, within 30 days from the date of issue of shares. The scheme is open to new industries as well as for expansion / diversification of existing industrial undertakings.