“Payments should be made directly by the foreign investor to the company. Payments made through third parties citing the absence of a bank account or similar such reasons will not be eligible for issuance of shares towards FDI,” the notification said.
As such, import of capital goods, machinery and equipment will be permitted by RBI subject to an independent valuation of the same by a third party entity from the country of import along with production of copies of documents and certificates issued by the customs authorities towards assessment of the fair-value of such imports.
The notification also stated that the application should clearly indicate the beneficial ownership and identity of the importer company as well as the overseas entity.
All such conversions of import payables for capital goods into FDI should be completed within 180 days from the date of shipment of goods, it added.
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