FEMA Circulars from June 10-30, 2012 are summarized: Circular 133 revises the annual return format on foreign liabilities and assets that must be filed by July 15 by Indian companies with foreign investment. Circular 134 allows Indian manufacturing and infrastructure companies that have been foreign exchange earners for 3 years to avail external commercial borrowings for repaying rupee loans or new capital expenditures up to 50% of export earnings, subject to RBI approval and certification. Circular 136 rationalizes Form 83 for obtaining loan registration numbers by updating it to reflect ECB liberalizations and amendments.

1. FEMA SNAPS OF JUNE, 2012
(From 10th June to 30th June, HEDGE-SQUARE
2012)
CIRCULAR NO. 133 DATED 20.06.2012 –
ANNUAL RETURN ON FOREIGN LIABILITIES AND ASSETS – REVISED FORMAT
Vide this Circular RBI has modified the annual return on Foreign Liabilities and Assets (FLA) and it can
be duly filled-in, validated and sent by e-mail, by July 15 every year. Said return should be filed by the
Indian Companies having received FDI or having made foreign investment abroad in the previous years
including of current year to the RBI or complicated terms.
CIRCULAR NO. 134 DATED 25.06.2012 –
EXTERNAL COMMERCIAL BORROWINGS (ECB) – REPAYMENT OF RUPEE LOANS
Vide this Circular it has been decided to allow Indian companies to avail of ECBs for repayment of Rupee
loan(s) availed of from the domestic banking system and / or for fresh Rupee capital expenditure, under the
approval route. RBI has prescribed following conditions for the same.
• Companies should be in manufacturing and infrastructure structure
• Said Companies shall be foreign exchange earners for last three years consistently
• Companies should not be on RBI’s defaulters list
• Said ECB shall be utilised for repayment of the Rupee loan(s) availed of for 'capital expenditure'
incurred earlier and are still outstanding in the books of the domestic banking system and / or for fresh
Rupee capital expenditure.
The overall ceiling for said loans is 10 billions whereas single Company can avail facility up to 50 per cent
of the average annual export earnings realized during the past three financial years. Specified certification
has to be taken from the statutory auditors and submitted to the RBI.
CIRCULAR NO. 136 DATED 26.06.2012 –
EXTERNAL COMMERCIAL BORROWING (ECB) – RATIONALISATION OF FORM-83
Vide this circular and on the review, Form-83 to be submitted for obtaining Loan Registration Number
(LRN), has been changed to reflect the liberalisations and amendments carried from time to time.
Borrowers to obtain LRN submit revised Form 83 with the RBI.
Hedge-Square| 111A, Impress, Currimji Compound, Fort, Mumbai - 01| phone +91 98705 51611