Banks Authorised to Deal in Foreign Exchange
Circular on Direct Investment by Residents in Joint Venture (JV)/
Owned Subsidiary (WOS) abroad
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.
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.
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stand withdrawn on July 01, 2008 and be replaced by an updated Master Circular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.
Chief General Manager