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August 2011

A.P. (DIR Series) Circular No. 73, dated 29-6-2011, Overseas Direct Investment — Liberalisation/Rationalisation.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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This Circular restates and consolidates the existing guidelines relating to:

(1) Transfer by way of sale of shares of a JV/ WOS not involving write-off of the investment.

(2) Transfer by way of sale of shares of a JV/ WOS involving write-off of the investment.

If the transaction does not fulfil the conditions mentioned under the Automatic Route, prior permission of RBI will need to be obtained before undertaking the same.

Indian Party is required to submit the details of divestment within 30 days from the date of divestment to RBI through its bank.

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