Tuesday, January 13, 2009

FEMA_Practical problems_10

With reference to the relevant provisions of the Foreign Exchange Management Act, 1999, advise on the following:

(i) Mehta Chemicals Ltd., a listed Indian company, is interested in investing in the shares of an overseas company.
(ii) Jai Capital Ltd. desires to export plant and machinery from India towards equity contribution in a joint-venture in Trinidad and Tobago.
(iii) Arora & Co., a proprietary concern in India, wants to apply to authorities concerned for permission to accept shares of a company outside India in lieu of fees due to it for professional services rendered to the said company.
(iv) Jolly Ltd. wants to borrow a term loan of £ 5 million @ 6% per annum from its foreign collaborators to be repaid in 7 years.

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