Saturday, May 19, 2018

FREQUENTLY ASKED QUESTIONS ON EXTERNAL COMMERCIAL BORROWIGNS BY RBI UPDATED AS ON 11th MAY 2018.


RECENT UPDATES BY RBI

FAQ’s ISSUED BY RBI on ECBs

FREQUENTLY ASKED QUESTIONS ON EXTERNAL COMMERCIAL BORROWIGNS BY RBI UPDATED AS ON 11th MAY 2018.

RBI FAQ’s covers the following areas:
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For more details , please click the following link:



One Full day seminar on FEMA at Mumbai on June 2 ,2018
Please attend one Full day seminar on FEMA at Mumbai on June 2 ,2018 as only limited seats are available. Please rush your request immediately.

For more details , please click the following link:



Tuesday, May 15, 2018

ONE FULL DAY SEMINAR ON FEMA AT MUMBAI DATE: June 2, 2018 SATURDAY


ONE FULL DAY SEMINAR ON FEMA AT MUMBAI   

By R V Seckar, F.C.S, ICSA (UK), LLB

DATE: June 2, 2018 SATURDAY

FEE: Rs 2000/= per participant including lavish Lunch ¸two tea-breaks and materials


Venue :
Sunville- Banquet & Conference , 9, Dr. Annie Besent Road, Worli , Mumbai -18  Telephone- 24978082, 24921604


Payment to be sent to:
Axis Bank - Koyambedu branch- Savings Bank Account Number 910010030395067 -IFSC Code : UTIB0001009- Beneficiary Name -
R V Seckar

You can pay through your mobile through

SBI BUDDY – 9848915177

Or
BHIM -9848915177@UP

Morning Session

10 A.M to 11.30 A.M
Various Compliances under FEMA – 
useful to Compliance officers of Listed Companies , Public companies and private limited companies which has FDI , ECB , ODI , etc.
11.45 A.M To 12.15 Noon
How to Make Compounding Application to RBI? What are all to be included in the pleadings?
12.15 Noon to 1 P.M
RECENT AMENDMENTS IN FEMA AND WHAT THE follow-up actions to be taken by the  PROFESSIONALS LIKE COMPANY SECRETARIES , CHARTERED ACCOUNTANTS , CMAS & ADVOCATES in compliance of the same

Afternoon Session

2 P.M to 2.30 PM   
How to Upload FC-GPR, FC-TRS in the ebiz Portal and what are the practical issues faced by the professionals and how to over-come

2.3O-3.30
AVAILING ECB, MAKING ODI – PROCEDURES , COMPLIANCES

3.30 to 4.30 P.M  
Compliance for Investment by NRI & Foreign Entities and Transfers
4.30 P.M to 5.00 P.M
Questions and answers on the topic discussed in the seminar
-
– 
Feedback of my full day seminar on FEMA at Chennai held on 17th September 2016- click here

Feedback on my FEMA seminar at Mysore ICSI chapter on 2nd December 2016, click here


COMMENTS AND PHOTOS TAKEN AT FULL DAY WORKSHOP ON FEMA  HELD AT BENGALURU ON 21ST JANUARY 2017 AT HOTEL CHALUKYA 


Seminar will be handled by
R.V.Seckar, F.C.S, ICSA (UK), LLB, M.com
Consultant in FEMA , Corporate Law , Insolvency law and NBFC 
Interested can contact: 09848915177, rvsekar2007@gmail.com

Please rush your registration as limited seats only available


Important Amendments in External Commercial Borrowing – Changes notified on 14.05.2018 by Reserve Bank of India


Important Amendments in External Commercial Borrowing – Changes notified on 14.05.2018 by Reserve Bank of India

R V Seckar FEMA Consultant  09849015177 rvsekar2007@gmail.com ECB, Incorporation of project ,liasion and project office


1.               Rationalisation of all-in-cost for ECB under all tracks and Rupee denominated bonds (RDBs)-

With a view to harmonising the extant provisions of Foreign Currency and Rupee ECBs and RDBs, it has been decided to stipulate a uniform all-in-cost ceiling of 450 basis points over the benchmark rate. The benchmark rate will be 6 month USD LIBOR3 (or applicable benchmark for respective currency) for Track I and Track II, while it will be prevailing yield of the Government of India securities of corresponding maturity for Track III (Rupee ECBs) and RDBs. ‘All-in-cost’-

The Meaning of “ All-in-Cost”

The term ‘All-in-Cost’ includes rate of interest, other fees, expenses, charges, guarantee fees whether paid in foreign currency or Indian Rupees (INR) but will not include commitment fees, pre-payment fees / charges, withholding tax payable in INR. In the case of fixed rate loans, the swap cost plus spread should be equivalent of the floating rate plus the applicable spread.

The Meaning of Tracks under ECB

R V Seckar FEMA Consultant  09849015177 rvsekar2007@gmail.com ECB, Incorporation of project ,liasion and project office


Presently, ECB can be raised under the following TRACKS.

Track I:
Track II:
Track III:
Medium term foreign currency denominated ECB with minimum average maturity of 3/5 years
Long term foreign currency denominated ECB with minimum average maturity of 10 years.
Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years.

2. Expansion of Eligible Borrowers’ list for the purpose of ECB –

It has been decided to permit:

R V Seckar FEMA Consultant  09849015177 rvsekar2007@gmail.com ECB, Incorporation of project ,liasion and project office


Housing Finance Companies To Avail ECB

A. Housing Finance Companies, regulated by the National Housing Bank, as eligible borrowers to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

Port Trusts To Avail ECB

B. Port Trusts constituted under the Major Port Trusts Act, 1963 or Indian Ports Act, 1908 to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

Companies in Maintenance and Freight Forwarding to Avail ECB

C. Companies engaged in the business of Maintenance, Repair and Overhaul and freight forwarding to raise ECBs denominated in INR only.

3. Revisiting ECB Liability to Equity Ratio provisions

It has been decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent. Earlier an ‘ECB liability to equity’ ratio of more than 4:1 needed approvals from the RBI.

4. ECB for Working capital purposes

5.Rationalisation of end-use provisions for ECBs –

It has now been decided to have only a negative list for all tracks that would include the following:

R V Seckar FEMA Consultant  09849015177 rvsekar2007@gmail.com ECB, Incorporation of project ,liasion and project office


Negative list for all tracks

Investment in Real Estate
a. Investment in real estate or purchase of land except when used for affordable housing as defined in Harmonised Master List of Infrastructure Sub-sectors6 notified by Government of India, construction and development of SEZ and industrial parks/integrated townships
b. Investment in capital market

c. Equity investment

Additionally for Tracks I and III, the following negative end uses will also apply except when raised from Direct and Indirect equity holders or from a Group company, and provided the loan is for a minimum average maturity of five years:

Additionally for Tracks I and III, the following negative end uses will also apply except when raised from Direct and Indirect equity holders or from a Group company, and provided the loan is for a minimum average maturity of five years:

D. Working capital purposes

e. General corporate purposes

f. Repayment of Rupee loans

Finally, for all Tracks, the following negative end use will also apply: g. On-lending to entities for the above activities from (a) to (f)

Earlier, a positive end-use list is prescribed for Track I and specified category of borrowers, while negative end-use list is prescribed for Track II and III.
The above mentioned changes are in the best interest of letting an entity have easy and hassle free access to ECB

Click here to access the Master Direction on ECB

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/15MDC8CEB9A7BDE64745B9BE1DCEC3293CA1.PDF




Saturday, May 5, 2018

Walmart-Flipkart deal turns political, lobby groups allege flouting of FDI norms


Walmart-Flipkart deal turns political, lobby groups allege flouting of FDI norms

R V Seckar Consultant in FEMA , Corporate laws , Insolvency laws , NBFC 09848915177 rvsekar2007@gmail.com


The Deal is against the FDI Norms.

Amid acquisition talks between Walmart and Flipkart, opposition from political corridors has already started brewing against the deal. They allege the deal is against FDI norms.

The Swadesh Jagaran Manch (SJM), an affiliate of the Rashtriya Swayamsevak Sangh (RSS), and other trade lobby groups have raised the concerns.
R V Seckar Consultant in FEMA , Corporate laws , Insolvency laws , NBFC 09848915177 rvsekar2007@gmail.com



FDI in ecommerce is not allowed.

The SJM’s national co-convenor Ashwani Mahajan said that the deal is in violation of Indian laws, as FDI in ecommerce is not allowed.

R V Seckar Consultant in FEMA , Corporate laws , Insolvency laws , NBFC 09848915177 rvsekar2007@gmail.com


 Kill competition and flush small retailers.

He alleged that companies such as Flipkart and Amazon were circumventing FDI rules by operating the marketplace model. He also believed that the foreign entities will also kill competition and flush small retailers.

R V Seckar Consultant in FEMA , Corporate laws , Insolvency laws , NBFC 09848915177 rvsekar2007@gmail.com


Retailers Association of India (RIA) raised the issue of FDI rules violations by the e-tailers.

In a complaint to Commerce Minister Suresh Prabhu, the association alleged that these marketplace models have been operating against the spirit of the policy. It further added that these firm have been influencing prices on their platforms and illegally offers abnormal discounts.

Besides, All India Online Vendors’ Association (AIOVA), a group of 3500 online sellers, is another grudging party which has not been kept in loop of any communication between Flipkart and Walmart. They are unsure what would be their future on the platform.

R V Seckar Consultant in FEMA , Corporate laws , Insolvency laws , NBFC 09848915177 rvsekar2007@gmail.com


100 per cent FDI in online retail of goods and services under the so-called “marketplace model”

In March last year, the government announced to introduce 100 per cent FDI in online retail of goods and services under the so-called “marketplace model” through the automatic route, seeking to legitimize existing businesses of e-commerce companies operating in India.

DIPP’s Clarification

At that time, department of industrial policy and promotion (DIPP) explained that the marketplace model is an information technology platform run by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.
DIPP had prohibited FDI in e-commerce companies that own inventories of goods and services and sell directly to consumers using online platforms


Tuesday, April 17, 2018

RBI Tightens Monitoring of Liberalised Remittance Scheme (LRS) for Overseas Money Transferring


RBI Tightens Monitoring of Liberalised Remittance Scheme (LRS) for Overseas Money Transferring

R V Seckar FEMA , Corporate Law & Insolvency Law Consultant 09848915177


The Reserve Bank today tightened reporting norms for the Liberalised Remittance Scheme (LRS) under which an individual can transfer up to USD 2,50,000 abroad in a year.

R V Seckar FEMA , Corporate Law & Insolvency Law Consultant 09848915177


Declaration made by the Remitter

The LRS transactions are currently permitted by banks based on the declaration made by the remitter.

The monitoring of adherence to the limit is confined to obtaining such a declaration without independent verification, in the absence of a reliable source of information.

"In order to improve monitoring and also to ensure compliance with the LRS limits, it has been decided to put in place a daily reporting system by AD banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs," the RBI said in a notification.

R V Seckar FEMA , Corporate Law & Insolvency Law Consultant 09848915177


To Upload Daily Transaction-Wise Information 


Now banks will be required to upload daily transaction-wise information undertaken by them under LRS.

Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.

R V Seckar FEMA , Corporate Law & Insolvency Law Consultant 09848915177


Individuals can avail of foreign exchange facility for the purposes within the limit of USD 2,50,000 only.

The scheme was introduced on February 4, 2004, with a limit of USD 25,000.

The LRS limit has been revised in stages consistent with prevailing .



Courtesy - Indian Express 


Friday, April 6, 2018

SEIS Benefits on your Foreign Exchange Earnings under FTP 2015 - 2021 - Benefits for Service Exporters and Product Exporters


SEIS Benefits on your Foreign Exchange Earnings under FTP 2015 - 2021 - Benefits for Service Exporters and Product Exporters


R V Seckar Consultant in FEMA , Corporate and Insolvency Law consultant,

What is SEIS ?
Service providers of eligible services shall be entitled to duty credit scrip at notified rates on the net foreign exchange earned. Duty credit scrips can be used for the payment of custom duties, excise duties, service tax on procurement of services, custom duty in case of default in fulfillments of export obligation under Advance Authorization/EPCG, etc.,

 Further, the SEIS scheme has given relaxation to the actual user condition and duty credit scrips and goods imported using duty credit scrips are freely transferable. Duty credit scrip would be valid for a period of 18 months from the date of issue

As per new FTP announced on 1st April’ 15; you shall be eligible for benefits under the SEIS Scheme against the Services earned in Foreign Exchange/ Deemed Foreign Exchange.
R V Seckar Consultant in FEMA , Corporate and Insolvency Law consultant,


Who are All Eligible for Claiming the Benefits ?

For Company / LLP
Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme. To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD15000 in the preceding financial year to be eligible for duty credit scrips.

R V Seckar Consultant in FEMA , Corporate and Insolvency Law consultant,

For Partnership & Individual Service Providers

For proprietorships or individual service providers, a minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.

R V Seckar Consultant in FEMA , Corporate and Insolvency Law consultant,

Eligible Service Providers for SEIS Scheme

1
Professional Services 
2
Research and Development Services
3
Rental/Leasing Services without Operators
4
Audiovisual Services 
5
Construction and Related Engineering Services 
6
Educational Services
7
Environmental Service
8
Health and Social Services
9
Tourism and Travel Services
10
Recreational, Cultural and Sporting Services 
11
Other Business Services


What Service we are Providing ?

We do apply and get the Issuance of SEIS Scrip from the Government/ DGFT in your favour as per the prescribed guidelines of the FTP.

The scrips, if preferred so, may be transferred/sold to anybody in advance at best rate, which will be paid immediately against delivery of Scrip along with Transfer Letter duly attested by your Bankers and the Sale Invoice.

We do charge our commission for processing and preparing the Application for SEIS Scrip only after issuance of the same in your favour; except your direct payment of Governmental fee for it, as per Policy.