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RBI/2007-08/17
Master
Circular No.1/2007-08 July
2, 2007 To, All
Banks Authorised to Deal in Foreign Exchange Madam
/ Sir, Master
Circular on Direct Investment by Residents in Joint Venture (JV)/
Wholly
Owned Subsidiary (WOS) abroad
Direct
investments by residents in Joint Venture (JV) and Wholly Owned Subsidiary (WOS)
abroad are being allowed, in terms of clause (a) of sub-section (3) of section
6 of the Foreign Exchange Management Act 1999, (42 of 1999) read with Notification
No. GSR 757 (E) dated November 19, 2004 and FEMA Notification 120/RB-2004 dated
July 7, 2004 as amended from time to time. 2. This
Master Circular
consolidates the existing instructions on the subject of "Direct Investment
by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) abroad' at
one place. The list of underlying circulars/notifications is furnished in Appendix.
3. This
Master Circular is issued with a sunset clause of one year. This circular will
stand withdrawn on July 01, 2008 and be replaced by an updated Master Circular
on the subject. Yours
faithfully,
(Salim Gangadharan)
Chief General Manager |