What should be done if a company is doubtful of applicability of Automatic Route ?
Ans. It is the responsibility of the investee companies to ensure that investment is eligible under the “Automatic Route” as provided for in the Notification No.FEMA 20 dated 3-5-2000. In case of doubt regarding whether the proposal will fall under the “Automatic Route”, the investee company may approach Secretariat of Industrial Assistance (SIA), Ministry of Commerce & Industry, Government of India, Udyog Bhavan, New Delhi for clarifications.
Related Questions
- In a public limited company having less than 100% foreign equity participation under the automatic route, whether it can be increased to 100% equity participation under the automatic route?
- What is the procedure to be followed by a company intending to make investment in a JV/WOS under the automatic route?
- What should be done if a company is doubtful of applicability of Automatic Route ?
