Tuesday, July 15, 2008


It has been decided to allow Registered Trusts and Societies engaged in manufacturing / educational sector to make investment in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank. Trusts /Societies satisfying the eligibility criteria as prescribed in the Annex, may submit the application/ sin Form ODI-Part I, through their AD Category-I bank/s. The AD Category–I bank, after ensuring that the applicant satisfies the prescribed criteria, may forward the application/s with their comments / recommendations, to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Overseas Investment Division, Central Office.

Conditions for Trust/ Society

  • The Trust/Society should be registered.
  • The Trust deed/ Society bye-laws permits the proposed investment overseas.
  • The proposed investment should be approved by the trustee/governing body
  • The Authorised Dealer bank is satisfied that the Trust/Society is KYC (Know Your Customer) compliant and is engaged in a bonafide activity.
  • The Trust/Society has been in existence at least for a period of three years.
  • The Trust/Society has not come under the adverse notice of any Regulatory/Enforcement agency like the Directorate of Enforcement, CBI etc.

In addition to the registration, the activities which require special license / permission either from the
Ministry of Home Affairs, Government of India or from the relevant local authority, as the case may be, the Authorised Dealer Category – I bank should ensure that such special license /permission has been obtained by the applicant.


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