(a) the details of legal provisions regarding the mobilisation of funds by companies from
abroad;
(b) whether some Indian companies have mobilised funds from abroad;
(c) if so, the details thereof company-wise, during each of the last three years;
(d) Whether the statutory provisions in this regard are strictly complied with by such
companies;
(e) If not, the details thereof during the last three years; and
(f) The steps taken by the Union Government thereon?
MINISTER OF FINANCE (SHRI P. CHIDAMBARAM)
(a) to (f): A Statement is laid on the Table of the Lok Sabha.
STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 11 BY SHRIMATI SANGEETA
KUMARI SINGH DEO AND DR. DHIRENDRA AGARWAL TO BE ANSWERED IN LOK SABHA ON 10-08-2007
REGARDING `MOBILISATION OF FUNDS FROM ABROAD BY COMPANIES`
(a) The extant legal provisions regarding mobilisation of funds by companies from abroad are
laid down under Foreign Exchange Management Act, 1999 and the rules and regulations issued
thereunder. These are:
(i) Equity through Foreign Direct Investment (FDI) in accordance with the guidelines /
policies thereon issued by Government of India from time to time and notified under FEMA.
(ii) Global Depository Receipts (GDRs) and American Depository Receipts (ADRs): This is
covered under the `Issue of Foreign Currency Convertible Bonds and Ordinary Shares (through
Depository Receipts Mechanism) Scheme, 1993`.
(iii) Debt through External Commercial Borrowings (ECBs and Foreign Currency Convertible
Bonds (FCCBs)): This is covered under extant ECB policy as prescribed by RBI vide its Master
Circular No. 02/2007-08 dated 02` July, 2007. In addition to above, FCCBs are also required
to follow the ADR / GDR Scheme.
(b) Yes Sir.
(c) As per information provided by the Reserve Bank of India (RBI), the amounts
mobilised by Indian companies from abroad through the above sources during the last three
years are given below:
(US$ Million) Year ECBs/FCCBs ADRs/ GDRs FDI
2004-05 9084 613 6051 2005-06 14547 2552 7722 2006-07 20639 3776 19531