1. 05.02.2013
HEDG E-SQUARE
FEMA – SNAPS (January, 2013)
Export of Goods and Services – Simplification and Revision of
INSIDE T HIS Softex Procedure at SEZs Overseas Direct Investment
Circular No: 66
Date: 01.01.2013
Simplification &
Revision of Softex Vide this Circular it has been decided that a software
Procedure
exporter under STPIs or SEZs/ EPZs/ 100%EOU/ DTA
ECB by NBFC-IFC having annual revenue of at least Rs. 1,000 Crore or
who files at least 600 SOFTEX Forms, annually on all
Issue of Shares against India basis, would become eligible for filing statements in
Import of Capital revised excel sheets, as prescribed.
Goods
Delay in Filing
Compliance External Commercial Borrowings Policy – Non-Banking
Documents of the
Company by the Financial Company – Infrastructure Finance Companies (NBFC-
Authorised Dealers IFCs)
ECB – Repayment of
Circular No: 69
Rupee Loan Date: 07.01.2012
Vide this circular limit of External Commercial Borrowing (ECB) (including outstanding) for
Non – Banking Financial Company (NBFC) categorised as Infrastructure Finance
Companies (IFCs) has been increased from 50% to 75% of their owned funds under
automatic route. Approval of Reserve Bank of India would be required for availing ECB of
more than 75% of total owned funds.
It should be noted that the permitted end-use of an ECB availed shall be for on-lending to the
infrastructure sector, as defined under the extant ECB policy.
Foreign Direct Investment (FDI) in India - Issue of Equity Shares
under the FDI Scheme Allowed under the Government route
Circular No: 74
Date: 10.01.2012
Vide this Circular RBI amended the position in issuance of equity shares/ preference shares
under the Government Route against import of capital goods. RBI has disallowed said issue
of equity/ preference shares against an import of Second Hand Machineries (which was
allowed earlier) and in line with this, same has been excluded from the valuation
requirement.

2. Page 2 FEMA SNAPS – Ja nuary, 2013
Reporting under Foreign Exchange Management Act, 1999
Circular No: 76
Date: 17.01.2012
Vide this Circular RBI has addressed the issues related to the delay in filing of various
Company documents from the side of Authorised Dealers (ADs). There are various
compliance documents including of Annual Performance Reports, ECB Forms, ODI
Forms, Intimation of FDI transaction, which needs to be submitted by the concerned
Companies to the RBI through Authorised Dealers. RBI stated that it is in late receipt
“Liberalisation in of said compliance documents from ADs. The Circular is of directive nature and does
ECB” not contain any fix amount of penalty on ADs for non submission or delayed
submission.
External Commercial Borrowings (ECB) Policy –Repayment
of Rupee loans and/or fresh Rupee capital expenditure – USD
10 billion scheme.
Circular No: 78
Date: 21.01.2013
Pursuant to this Circular, Indian Companies engaged in hotel
sector with a total project cost of INR 250 Crores or more are
now allowed to avail ECB for repayment of outstanding Rupee
loan(s) obtained from the domestic banking system and / or for
fresh Rupee capital expenditure. Previous to this circular said
facility was extended to the Indian Companies engaged in the
manufacturing and infrastructure sector. Above said
liberalisation is subject to the compliance with other terms and
conditions prescribed earlier in related Circulars.
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