9A.12
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
In principle Approval for Acquisition
(i)In case an Indian company desires to have an in principle approval for acquisition of an overseas concern through bidding/tender procedure, which may involve remittance towards Earnest Money Deposit (EMD) or issue of bid bond guarantee by a bank in India in favour of the overseas authorities, application should be submitted to Central Office of Reserve Bank by way of a letter, atleast one month prior to the last date for submission of bid to the overseas authority, along with following documents: (a)Certified relevant extracts of bidding guidelines,
(ii)In case of final investment proposal in the post-award stage, Indian company should furnish suitable documentary evidence in support of winning the bid citing Reserve Banks reference number granting in principle approval and apply afresh to Reserve Bank under copy to the concerned Indian Mission in the manner indicated in form ODI.
(b)Chartered Accountants certificate indicating the valuation of shares and assets of the overseas concern justifying the acquisition price,
(c)Project/feasibility report on the proposal, and
(d)Application in form ODI, duly filled in to the extent applicable.
Where the final investment does not qualify for clearance under Fast Track Route, a copy each of the proposal should be forwarded simultaneously by speed post/courier to (i) Ministry of Commerce [EP(OI) Section], Government of India (GOI) (ii) Ministry of Finance (Department of Economic Affairs),GOI,(iii) Ministry of External Affairs (Economic Division), GOI, (iv) Department of Company Affairs, GOI, New Delhi and (v) the concerned Indian Mission in the host country, as indicated in form ODI.