Mumbai, Jun 27 (UNI) Further liberalising the policy on overseas investments, the RBI today allowed Registered Trusts and Societies, engaged in manufacturing/educational sector to make investments outside the country.
The Central Bank, in a notification here, said such ODI by these institutions could be made in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank.
Necessary amendments to the Foreign Exchange Management (Transfer or Issue of any Foreign Security), Regulations, 2004, have been made, RBI said.
The criteria for Overseas Investment by Registered Trusts included it should be registered under the Indian Trust Act, 1882 and its deed permitted proposed investments abroad, it should have been in existence at least for a period of three years and not have come under the adverse notice of any Regulatory/Enforcement agency like Directorate of Enforcement, CBI etc. For a society, the criteria included it should be registered under Societies Registration Act, 1860, the Memorandum of Association and rules and regulations permit it to make proposed investment, the Society has been in existence at least for a period of three years and not come under adverse notice of any Regulatory/Enforcement agency like Directorate of Enforcement and CBI. In addition to the registration, the activities which require special license/permission either from the Ministry of Home Affairs, Government of India or from relevant local authority, as the case may be, the Authorised Dealer Category and bank should ensure that such special license/permission has been obtained by the applicant.
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