|
RBI/2016-17/216
A.P. (DIR Series) Circular No. 28
January
25, 2017
To
All Category- I Authorised
Dealer Banks
Madam / Sir,
Prohibition
on Indian Party from making direct investment in countries
identified by the Financial Action Task Force (FATF) as “Non Co-
operative countries and territories”
Attention of the Authorised Dealer
Category - I (AD – Category I) banks is invited to Regulation 6 of FEMA
Notification No. FEMA.120/RB-2004 dated July 07, 2004, as amended from time
to time.
2. At present, there is no
restriction on an Indian Party with regard to the countries, where it can
undertake Overseas Direct Investment. In order to align, the instructions
with the objectives of FATF, on a review, it has been decided to prohibit
an Indian Party from making direct investment in an overseas entity (set up
or acquired abroad directly as JV/ WOS or indirectly as step down
subsidiary) located in the countries identified by the FATF as “non
co-operative countries and territories” as per list available on FATF
website www.fatf-gafi.org or as notified by the Reserve Bank of
India from time to time.
3. Necessary amendments to the
Notification ibid have been notified vide Notification No. FEMA
382/2016-RB dated January 02, 2017 c.f. G.S.R. No. 01(E) dated January
02, 2017.
4. AD- Category I banks may
bring the contents of this circular to the notice of their constituents and
customers concerned.
5. Master Direction
No.15/2015-16 dated January 01, 2016 is being updated to reflect the
changes.
6. The directions contained in
this circular have been issued under section 10(4) and 11(1) of the Foreign
Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice
to permissions/approvals, if any, required under any other law.
Yours
faithfully,
(Shekhar
Bhatnagar)
Chief General Manager-In-Charge
|
