RBI tightens remittances guidelines for FDI

The new requirement is in addition to the submission of prescribed documents within 30 days from the date of issue of shares. quot;Accordingly, Indian companies receiving funds from their foreign investors in accordance with the general permission, should immediately report in any case, not later than 30 days from the date of receipt of remittance by a letter to the regional office of the Reserve Bank having jurisdiction over the company,quot; said an RBI press release.

The RBI has also extended the general permission granted for issue of equityshares to issue of preference shares to foreign investors under the automatic route of RBI8217; as also for non-resident Indians/overseas corporate bodies under 100 per cent scheme.