Establishment of Branch Offices/Liaison Offices in India by Foreign Entities - Delegation of Powers by RBI - Clarification
IN terms of A.P. (DIR Series) Circular No.24 dated December 30, powers have been delegated to the AD Category-I banks regarding submission of Annual Activity Certificate by BO / LOs, extension of the validity period of LOs and closure of BO / LOs of foreign entities in India.
In the Circular ibid, powers with regard to transfer of assets of LO / BO to others have not been delegated. It is, therefore, clarified that transfer of assets of Liaison Office / Branch Office to subsidiaries or other LO / BO or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India.
All the other instructions of A.P. (DIR Series) Circular No.24 dated December 30, 2009 remains unchanged.
RBI A. P. (DIR Series) Circular No. 88, Dated: March 1, 2012