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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

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FEMA Snaps June 2012

  • 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