(i) Participation in overseas Joint Ventures(JV)/ setting up of Wholly Owned Subsidiaries (WOS) abroad will involve remittance of cash, export of goods, etc. from India towards the Indian companys equity contribution and will, therefore, require Reserve Banks approval under relevant provisions of FERA 1973. Proposals for investment in JV/WOS abroad are considered in accordance with the Guidelines for Indian Direct Investment in Joint Ventures and Wholly Owned Subsidiaries Abroad as notified by Government of India, Ministry of Commerce vide their Notification No.4/1/93-EP (OI) dated 17th August, 1995 (see Annexure I) and further amendments/modifications notified thereto from time to time. These Guidelines, however, do not apply to portfolio investment by Indian companies in foreign concerns and direct investment in the banking sector. All approvals issued by Regional Offices of Reserve Bank on the basis of approvals given by Government of India, Ministry of Commerce prior to issue of the Guidelines dated 17th August 1995 shall continue to remain in force subject to the terms and conditions stipulated in the relative approval letter issued by the Government of India/ Reserve Bank and such other directions/instructions as may be issued by the Government of India/Reserve Bank from time to time.

(ii) Authorised dealers may keep themselves fully apprised of these Guidelines and also subsequent amendments thereto notified from time to time as also the other procedural instructions issued by Reserve Bank and bring the contents thereof to the notice of their constituents.