In case of private placement which is also a downstream investment as per FEMA. We have taken valuation from reg. valuer+ CA which is 5 months old... shareholders approved private placement basis this valuation and the same is filed with ROC.
In RBI filing the said valuation report being old than 90 days we may expect rejection from RBI and in such case we may take another valuation with current date only for filing purpose.
Please let me know if there is anything wrong in this practice. As per my view we don't need to link valuation requirements of both the laws. And can have separate valuation filed with different authorities. Please advise.
In connection with FLA please guide me on the following:
1. Is downstream investment is shown in Form FLA?
2. If yes, in which point it is shown and how it is calculated?
3. Who is supposed to show such DI? Intermediate Investor or Ultimate Investee Company?
I am in the process of reporting of downstream investment.
As far as I understand the onus of reporting is on the Indian Entity which is investing further in another Indian Entity.
While creating Business User for Indian Investor Entity, the Form is asking for IFSC Code and Branch. Now my question though treated as downstream investment, the movement of funds is from one Indian Bank to another Indian Bank. There is no inward remittance as such from Foreign Country.
In this case which Bank to be selected? How to decide which bank will process this transaction?
Following is the query:
A is an investment company registered outside India. A has a subsidiary called B in India which is an operating company as per the terms of consolidated FDI Policy. Now B wants to make downstream investment in a company called C which is engaged in non banking financial services where 100% FDI is allowed under automatic route.
1. Can investment be made by B Company in C Company in the form of equity shares?
2. Can anyone share downstream documents which is required to file on RBI Firms portal?
3. Can anyone have checklist of downstream investment? Plz share
Kindly treat the same very urgent.
Apart from reporting in Form DI in FIRMS Portal, an investment vehicle making downstream investment shall notify the Secretariat for Industrial Assistance in the FIFP Portal, DIPP (Department of Industrial Policy and Promotion) within 30 days of such investment, even if capital instruments have not been allotted, along with the modality of investment in new / existing ventures.
Does any one have a format of reporting that is asked for in the FIFP portal. At present, I understand that, only after registering as a User, one gets access to the reporting screen and hence am not able to view the same now.
I need the format of reporting in DIPP portal to assess the nature of information asked for and know if it is a lengthy reporting?
Thanks in advance.
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