New Delhi, June 30: The Reserve Bank of India (RBI) has permitted the issuance of equity, preference shares under the government route of the foreign direct investment scheme for some categories.
\"Payments should be made directly by the foreign investor to the company. Payments made through third parties citing the absence of a bank account or similar such reasons will not be eligible for issuance of shares towards FDI\" the notification said.
Import of capital goods machinery equipments (including second-hand machineries) are subject to compliance with the certain conditions set by RBI.
The import of capital goods, machineries should made by a resident in India, is in accordance with the Export / Import Policy issued by the Government of India as notified by the Directorate General of Foreign Trade (DGFT) and the regulations issued under the Foreign Exchange Management Act (FEMA), 1999 relating to imports issued by the Reserve Bank.
The Indian regulator has asked for the independent valuer from the country of import along with production of copies of documents /certificates issued by the customs authorities towards assessment of the fair-value of such imports. Central bank has decided to know clearly the beneficial ownership and identity of the importer company as well as the overseas entity.
According to notification, all such conversions of import payables for capital goods into FDI should be completed within 180 days from the date of shipment of goods.