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Intimation of Downstream Investment to RBI

About of Service

The services typically offered for the Intimation of Downstream Investment to RBI include:

  1. Consultation and Advisory Services:

    • Providing expert guidance on RBI regulations and procedures related to downstream investments by Indian companies.
    • Advising on compliance requirements and documentation needed for notifying RBI about downstream investments.

  2. Documentation Preparation:

    • Assisting in the preparation and compilation of necessary documents such as board resolutions, shareholders' agreements, and KYC documents of the downstream entity.

  3. Intimation Filing Preparation:

    • Compiling and organizing all required information and documents in the prescribed format for notifying RBI about the downstream investment.

  4. Online Submission Facilitation:

    • Facilitating the online submission process of the intimation to RBI through the specified portal or channel.
    • Ensuring all details are accurately entered and documents are uploaded as per RBI guidelines.

  5. Verification and Compliance Assurance:

    • Conducting verification of data and documents to ensure they comply with RBI guidelines and regulatory requirements.
    • Providing assurance on adherence to all necessary regulatory aspects for downstream investments.

  6. Follow-up and Resolution Management:

    • Monitoring the status of the intimation filing, addressing any queries promptly, and facilitating communication with RBI authorities to resolve issues if any.

  7. Training and Awareness Sessions:

    • Conducting training sessions for client teams to enhance understanding of RBI requirements for downstream investments and ensure compliance.
    • Keeping stakeholders informed about updates or changes in RBI regulations affecting downstream investments.

  8. Customized Solutions and Strategic Advice:

    • Tailoring services to meet specific organizational needs, offering strategic advice on structuring downstream investments, tax implications, and risk management strategies.

Uses and Benefits
  • Consultation and Advisory Services: We provide expert guidance on RBI regulations governing downstream investments by Indian companies, ensuring clients understand and adhere to regulatory requirements.
  • Documentation Preparation: We assist in preparing essential documents such as board resolutions, shareholders' agreements, and KYC documents of the downstream entity required for notifying RBI.
  • Intimation Filing Preparation: Our team compiles and organizes all necessary information and documents in the prescribed format for the submission of the intimation to RBI.
  • Online Submission Facilitation: We facilitate the online submission process of the intimation to RBI through the designated portal, ensuring accurate data entry and document uploads as per RBI guidelines.
  • Verification and Compliance Assurance: We verify data and documents to ensure strict adherence to RBI guidelines and regulatory requirements for notifying RBI about downstream investments.
  • Follow-up and Resolution Management: We monitor the status of the intimation filing, promptly address any queries, and facilitate communication with RBI authorities to resolve issues efficiently.

Select your own Associate

Charges Structure & Our Scope of Work

Additional Disclosure

  1. Details of Downstream Investment:

    • Provide specific details about the downstream investment made by the company. This includes the name of the investee company, its business activities, and the purpose of the investment.

  2. Investment Amount and Structure:

    • Disclose the amount invested in the downstream company and the structure of the investment (e.g., equity investment, loan, guarantees). Specify whether the investment is in the form of equity shares, preference shares, debentures, or other financial instruments.

  3. Ownership Stake:

    • Specify the percentage of ownership or control acquired through the downstream investment. Provide information on any changes in ownership or control resulting from the investment.

  4. Regulatory Compliance:

    • Confirm compliance with applicable regulations and guidelines issued by the RBI regarding downstream investments. This includes adherence to Foreign Exchange Management Act (FEMA) regulations and any specific provisions related to downstream investments.

  5. Purpose and Rationale:

    • Provide a rationale for the downstream investment, highlighting strategic objectives, business synergies, or market opportunities pursued through the investment. Explain how the investment aligns with the company's growth strategy and long-term objectives.

  6. Risk Assessment and Mitigation:

    • Discuss any risks associated with the downstream investment and mitigation strategies implemented to manage these risks. This could include financial risks, market risks, regulatory risks, and operational risks.

  7. Financial Impact:

    • Describe the expected financial impact of the downstream investment on the company's financial statements, profitability, and cash flow. Provide projections or estimates where applicable.

Terms & Conditions

Documents & Detail Required

The documents typically required for the Intimation of Downstream Investment to RBI include:

  1. Board Resolution: Resolution passed by the board of directors of the Indian company approving the downstream investment.

  2. Shareholders' Agreement: If applicable, a copy of the shareholders' agreement outlining the terms and conditions of the downstream investment.

  3. Foreign Inward Remittance Certificate (FIRC): Issued by the authorized bank confirming the receipt of funds for the downstream investment.

  4. KYC Documents: Know Your Customer (KYC) documents of the downstream entity, including:

    • Passport or any other valid government-issued identification proof.
    • Address proof (utility bills, bank statements, etc.).

  5. Business Plan or Project Report: Detailed plan or report outlining the purpose, scope, and financial aspects of the downstream investment.

  6. Valuation Report: If applicable, a valuation report by a registered valuer providing the valuation of assets or shares involved in the downstream investment.

  7. Any Other Supporting Documents: Any additional documents as required by RBI guidelines or specific instructions for notifying about the downstream investment.

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OUR REVIEW

FAQ'S

What is the purpose of filing an intimation of downstream investment to RBI?

The intimation informs RBI about investments made by Indian companies in subsidiaries or joint ventures abroad, ensuring compliance with regulatory requirements.

Who needs to file the intimation of downstream investment to RBI?

Indian companies that make investments in subsidiaries, joint ventures, or other entities abroad are required to file this intimation with RBI.

What documents are required for filing the intimation?

Documents typically include board resolutions approving the investment, shareholders' agreements (if applicable), KYC documents of the overseas entity, and other relevant financial documents.

When should the intimation of downstream investment be filed with RBI?

The intimation should be filed within a specified timeline after making the investment, as per RBI guidelines. Timelines can vary based on the nature and size of the investment.

Can the intimation of downstream investment be filed online?

Yes, the intimation must be filed online through RBI's designated portal or platform for reporting foreign investments by Indian entities.

What happens if there are errors in the filed intimation?

Errors can be rectified by filing a revised intimation with RBI within the stipulated time frame. It's important to ensure accuracy to avoid delays or compliance issues.

Are there any exemptions or relaxations for filing the intimation of downstream investment?

Certain categories of investments or specific circumstances may qualify for exemptions or relaxed reporting requirements. It's advisable to consult RBI guidelines or seek expert advice for clarification.