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Can an Indian Party disinvest from JV / WOS without write off?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROHIT SINGH asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

i. the sale is effected through a stock exchange where the shares of the overseas JV/ WOS are listed; ii. if the shares are not listed on the stock exchange and the shares are disinvested by a private arrangement, the share price is not less than the value certified by a Chartered Accountant / Certified Public Accountant as the fair value of the shares based on the latest audited financial statements of the JV / WOS; iii. the Indian Party does not have any outstanding dues by way of dividend, technical know-how fees, royalty, consultancy,

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that Can an Indian Party disinvest from JV / WOS without write off? Let me informed that Yes. The Indian Party may disinvest without write off under the automatic route subject to the following: i. the sale is effected through a stock exchange where the shares of the overseas JV/ WOS are listed; ii. if the shares are not listed on the stock exchange and the shares are disinvested by a private arrangement, the share price is not less than the value certified by a Chartered Accountant / Certified Public Accountant as the fair value of the shares based on the latest audited financial statements of the JV / WOS; iii. the Indian Party does not have any outstanding dues by way of dividend, technical know-how fees, royalty, consultancy, commission or other entitlements and / or export proceeds from the JV or WOS; iv. the overseas concern has been in operation for at least one full year and the Annual Performance Report together with the audited accounts for that year has been submitted to the Reserve Bank; v. the Indian party is not under investigation by CBI / DoE/ SEBI / IRDA or any other regulatory authority in India; and vi. Other terms and conditions prescribed under Regulation 16 of the Notification ibid. Hope answer was helpful to you Regards, Arjun Pratap Singh

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