THERE IS A STRONG NECESSITY OF UNIFORMITY BETWEEN FEMA AND COMPANIES ACT ,2013.

MY REQUEST HAS BEEN ACCEPTED BY RBI AND NOW FEMA PROVISION FOR ALLOTMENT OF SHARES ARE MADE IN LINE WITH COMPANIES ACT 2013

For details ,please click the following link:

http://rvseckarfema.blogspot.in/2016/06/contradictions-between-companies-act.html

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.