Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.24 dated December 30, 2009 in terms of which powers have been delegated to the AD Category-I bank regarding submission of Annual Activity Certificate by BO / LOs, extension of the validity period of LOs and closure of BO / LOs of foreign entities in India.
2. In the A.P. (DIR Series) Circular mentioned above, powers as regards the transfer of assets of LO / BO to others have not been delegated. It is, therefore, clarified that transfer of assets of Liaison / Branch Office to subsidiaries or other LO / BO or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India.
Ref- RBI/2011-12/421- A.P. (DIR Series) Circular No.88 dated 1 March 2012