What changed
Previously, Indian parties had to submit share certificates or evidence of foreign investment to the RBI Regional Office within six months. Now, these documents must be submitted to and retained by the designated AD Category-I bank, which must verify their bonafides and submit a certificate to RBI with the APR.
What it means for you
This simplifies compliance for Indian parties by reducing direct interaction with RBI. For AD banks, it adds a monitoring and verification responsibility, requiring them to ensure timely receipt and authenticity of investment evidence, and to report via the APR. Banks must update internal processes to handle document retention and certification.
What you must do
- Update internal procedures to accept and retain share certificates or evidence of overseas investment from Indian parties.
- Verify the bonafides of all such documents received from customers.
- Submit a certificate to RBI along with the APR (Part III of Form ODI) confirming receipt and verification of documents.
- Inform all relevant customers and constituents about the new document submission process.
Who it affects
AD Category-I banks, Indian parties making overseas investments
What documents must AD banks now retain?
Share certificates or any other document serving as evidence of investment in a foreign entity, where share certificates are not issued.
What is the deadline for submitting evidence to the AD bank?
Within six months from the date of remittance, capitalization due date, or the date the amount was allowed to be capitalized, or such further period as RBI may permit.
How does the AD bank report this to RBI?
By submitting a certificate along with the APR (Part III of Form ODI) as per AP (Dir Series) Circular No. 68 dated June 1, 2007.