MY REQUEST HAS
BEEN ACCEPTED BY RBI AND NOW FEMA PROVISION FOR ALLOTMENT OF SHARES ARE MADE IN
LINE WITH COMPANIES ACT 2013
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I POINTED OUT EARLIER MY POST, THAT THERE IS A CONTRADICTION
BETWEEN COMPANIES ACT AND FEMA FOR THE NUMBER OF DAYS WITHIN WHICH ALLOTTMENT
OF SHARES HAVE TO BE MADE
I PLEADED
THAT THERE IS A STRONG NECESSITY OF UNIFORMITY BETWEEN FEMA AND COMPANIES ACT ,2013.
Will the Government of India
through the Ministry of Commerce and Industry will amend the Industrial policy
issued in June 2016 by making amendment as “shares have to be allotted within
60 days of receipt of inward remittance by the non-resident investor.
This will go long way to remove
the confusions and misunderstandings as regards to number of days within which
the shares have to be allotted
Now , The Reserve Bank
of India has clarified the query in relation to time limit of Allotment of
Shares for the Foreign Direct Investment received by the company through
notification no. FEMA 20(R)/2017-RB dated 07 November 2017.
As per this
notification, Capital Instruments such as Equity, CCPs, CCDs shall be issued by
the Indian company to the Investors making foreign direct investment within
sixty (60) days from the date of receipt of the consideration.
Now , FEMA and Companies Act 2013 stresses that shares
shall have to be allotted within 60 days of the receipt of consideration.
