INTERVIEW TIPS

TRADE CREDIT & ECB

A. A trade credit cannot result into net payment o cas! to t!e importer.
B. Trade Credit "ill arise "!en t!ere is an import o t!e asset# and t!e credit is or
payment o t!e price o imported $oods.
C. T!e maturity period o loan is less t!an % years.
D. T!e Buyers& Credit and Suppliers& Credit or less t!an t!ree years
'. W!at is meant (y (uyer&s credit) seller&s credit*
A. Supplier&s credit is t!e credit e+tended (y t!e o,erseas e+porter
B. Buyer&s credit is loan or credit arran$ed (y t!e (uyer rom an o,erseas (an- or ot!er
lender
C. Buyer arran$es a credit rom an Indian lender in .orei$n Currency
%. Trade Credit and ECB are a,ailed (y residents are $o,erned (y*
B. E+ternal Commercial Borro"in$s and Trade Credits a,ailed o (y residents are
$o,erned (y
clause /d0 o su(1section % o Section 2 o t!e .orei$n E+c!an$e 3ana$ement Act#
4555and also
C. As per t!e $uidelines o 3inistry o E+ternal aairs
D. As per t!e $uidelines o 3inistry o .inance
6. T!e eli$i(le (orro"ers under automatic route to a,ail ECB is
A. .inancial intermediaries# suc! as (an-s# inancial institutions /.Is0# 7ousin$ .inance
Companies /7.Cs0 and Non1Ban-in$ .inancial Companies /NB.Cs0
B. Corporate# includin$ t!ose in t!e !otel# !ospital# sot"are sectors /re$istered under t!e
Companies
Act# 45820# 9nits in Special Economic :ones /SE:0# NB.Cs 1 Asset .inance
companies/A.Cs0# /NB.Cs0
1 Inrastructure .inance Companies /I.Cs0 3icro .inance Institutions /3.Is0 en$a$ed in
micro
inance acti,ities# Non1;o,ernment <r$ani=ations /N;<s0 en$a$ed in micro inance
acti,ities
C. Trusts /ot!er t!an t!ose en$a$ed in 3icro1inance acti,ities0 and Non1Proit ma-in$
8. T!e eli$i(le lenders under automatic route to a,ail ECB is
/a0 International (an-s# /(0 international capital mar-ets#
/c0 3ultilateral inancial institutions /suc! as I.C# ADB# CDC# etc.0 ) re$ional inancial
institutions and ;o,ernment o"ned de,elopment inancial institution
/d0 E+port credit a$encies# /e0 suppliers o e>uipments#
/0 .orei$n colla(orators and /$0 orei$n e>uity !olders ?ot!er t!an erst"!ile <,erseas
2. W!at is t!e ma+imum amount t!at can (e a,ailed as ECB in a inancial @ear*
a0 T!e ma+imum amount o ECB "!ic! can (e raised (y a corporate ot!er t!an t!ose in
t!e !otel# !ospital and sot"are sectors is 9SD A8B million or its e>ui,alent durin$ a
(0 N;<s en$a$ed in micro inance acti,ities and 3icro .inance Institutions /3.Is0 can
raise
ECB up to 9SD 4B million or its e>ui,alent
c0 NB.C1I.Cs can a,ail o ECB up to A8 per cent o t!eir o"ned unds /ECB includin$
outstandin$ ECBs0 and must !ed$e A8 per cent o t!eir currency ris- e+posure.
d0 NB.C1A.Cs can a,ail o ECBs up to A8 per cent o t!eir o"ned unds /ECB includin$
outstandin$ ECBs0 su(Cect to a ma+imum o 9SD 'BB million or its e>ui,alent per
inancial year "it! a minimum maturity o 8 years and must !ed$e t!e currency ris-
e0 T!e ma+imum amount o ECB "!ic! can (e raised (y SIDBI is 8BD o t!eir o"ned
unds su(Cect to a ceilin$ o 9SD 8BB 3I<
A. W!at is t!e interest rate c!ar$ed or trade credit upto 8 years under automatic route*
A. 2 mont!s EIB<R o t!e respecti,e currency plus %BB (asis points
B. All in cost ceilin$ o 2 mont!s EIB<R o t!e respecti,e currency plus %8B (asis points
C. All in cost ceilin$ o 2 mont!s EIB<R o t!e respecti,e currency plus %8B (asis points
F. W!at is t!e meanin$ o All1in1Cost Ceilin$*
A. T!e all1in1cost ceilin$ "ill include arran$er ee# upront ee# mana$ement ee#
!andlin$)
B. As in A0 e+cept t!e out o poc-et e+penses
C. As in A0 includin$ t!e c!ar$es paya(le in INR
5. W!et!er Aut!ori=ed Dealers are permitted to issue Eetters o credit)$uarantees) Eetter
o
9nderta-in$ /Eo90 )Eetter o Comort /EoC0 a,ourin$ o,erseas supplier# (an- and
inancial
or 2 mont!s EIB<R o 9SD "!ic!e,er is !i$!er
processin$ c!ar$es# out o poc-et and le$al e+penses.
A. @es. T!e monetary ceilin$ or suc! type o ;uarantee is up to 9SD 'B million per
transaction and or a period up to one year or import o all non1capital $oods and t!ree
B. E+cept or $old# palladium# platinum# R!odium# sil,er# etc. or "!ic! Sellers&)Buyers&
Credit
C. No. <nly "it! RBI prior appro,al AD !as t!e po"ers to issue suc! type o $uarantee
4B. W!at are t!e end uses not permitted under ECB*
a0 .or on1lendin$ or in,estment in capital mar-et or ac>uirin$ a company /or a part
t!ereo0 in
India (y a corporate ?in,estment in Special Purpose Ve!icles /SPVs0# 3oney 3ar-et
3utual
.unds /333.s0# etc.# are also considered as in,estment in capital mar-etsG.
c0 .or $eneral corporate purpose "!ic! includes "or-in$ capital and repayment o
e+istin$ rupee
44. W!at are t!e dele$ated po"ers o an AD in case o prepayment o ECB*
a0 Prepayment o ECB up to 9SD 8BB million may (e allo"ed (y t!e AD (an- "it!out
prior
appro,al o t!e Reser,e Ban- su(Cect to compliance "it! t!e stipulated minimum a,era$e
maturity period as applica(le to t!e loan.
(0 Pre1payment o ECB or amounts e+ceedin$ 9SD 8BB million "ould (e considered (y
t!e
Reser,e Ban- under t!e Appro,al Route.
c0 T!ere is no dele$ated po"er only prior appro,al !as to (e o(tained rom Reser,e Ban-
a0 .CCB means .orei$n Currency Con,erti(le Bond & "as (rou$!t under t!e ECB
$uidelines in
Au$ust 'BB8 .CCBs & are also su(Cect to all t!e re$ulations "!ic! are applica(le to
ECBs.
(0 .CCB is a orm o (orro"in$ under ECB
c0 It is a -ind o s!are)(ond (ein$ issued
a0 .orei$n Currency E+c!an$ea(le Bond /.CEB0 means a (ond e+pressed in orei$n
currency# t!e
principal and interest in respect o "!ic! is paya(le in orei$n currency.
(0 issued (y an Issuin$ Company and su(scri(ed to (y a person "!o is a resident outside
India#
in orei$n currency and e+c!an$ea(le into e>uity s!are o anot!er company# to (e called
t!e
<ered Company# in any manner# eit!er "!olly# or partly or on t!e (asis o any e>uity
related
"arrants attac!ed to de(t instruments.
c0 T!e .CEB may (e denominated in any reely con,erti(le orei$n currency.
46. W!at is t!e procedure or con,ersion o ECB to e>uity*
a0 Borro"ers are re>uired to report ull con,ersion o outstandin$ ECB into e>uity in t!e
orm
.C1;PR to t!e Re$ional <ice concerned o t!e Reser,e Ban- as "ell as in orm ECB1'
su(mitted to t!e DSI3# RBI "it!in se,en "or-in$ days rom t!e close o mont! to "!ic!
it
(0 Borro"ers are to route t!e transaction directly "it! Re$ional oice o RBI
c0 Borro"ers can not con,ert t!e ECB
Eoan Re$istration Num(er /ERN0# "ill (e alloted to (orro"ers are re>uired to su(mit
.orm F%# in
duplicate# certiied (y t!e Company Secretary /CS0 or C!artered Accountant /CA0 to t!e
desi$nated
/<ne copy is to (e or"arded (y t!e desi$nated AD (an- to t!e Director# Balance o
Payments
Statistics Di,ision# Department o Statistics and Inormation 3ana$ement /DSI30#
Reser,e Ban-
o India# Bandra1Hurla Comple+# 3um(ai 1 6BB B84.0
48..or (orro"in$ under ECB t!e (orro"er !as to su(mit
c0 T!e recent Audited (alance s!eet
d0 Copy o t!e loan a$reement is dispensed "it!
42. W!et!er t!e c!an$e in currency o (orro"in$ is permitted under ECB*
a0 Desi$nated AD Cate$ory1I (an-s may allo" c!an$es in t!e currency o (orro"in$#
(ot! under
t!e automatic and t!e appro,al routes# su(Cect to all ot!er terms and conditions o t!e
ECB
(0 Desi$nated AD (an-s s!ould ensure t!at t!e proposed currency o (orro"in$ is reely
c0 T!e c!an$es s!ould (e promptly reported to t!e Department o Statistics and
Inormation
3ana$ement# Reser,e Ban- o India in .orm F%.
SWI.T & INC<TER3S
a. sot"are international unds transer
(. sc!eme or "orld"ide international unds transer
c. society or "orld"ide international inancial telecommunication
d. society or "orld"ide inter (an- inancial telecommunication
a0 It is a statement o accounts o t!e Ban-
(0 It is a credit inormation to (e $i,en to customers
d0It is a (an- to (an- transer in a aut!entic messa$e
a0 It is a messa$e to (e !anded o,er to customers
(0 It is a messa$e ormat or ma-in$ payments to customers
c0 It is an aut!enticated ormat or recei,in$)ma-in$ payments or & on (e!al o t!e
customers
d0 It is messa$e ormat used or recei,in$ money rom a(road
(0 Simple euro payments as per s"it ormat
8. 9nder SWI.T 3TABB ormat is used or sendin$
(0 Ad,ice o openin$ o letter o credit to ad,isin$ )(eneiciary Ban-
c0 Aut!enticated ormat or ad,isin$ openin$ o documentary credit to ad,isin$)
(eneiciary Ban-
d0 Ad,ise o openin$ o letter o $uarantee
2. 9nder SWI.T 3TAB8 ormat is used or sendin$
a0 3essa$e sent (y issuin$ (an- to ad,isin$ (an-# (rie ad,ice o a documentary credit#
t!e ull details
(0 It is a pre ad,ice or openin$ o letter o ;uarantee
c0 It is a pre ad,ice o payment o a (ill sent on collection Basis
A. 9nder SWI.T 3T A4B ormat is used or sendin$
a0 It is a pre ad,ice o payment o a (ill sent on collection Basis
c0 T!is messa$e is sent (y an ad,isin$ (an-# "!ic! !as recei,ed a documentary credit
rom t!e issuin$
(an-# to t!e (an- ad,isin$ t!e (eneiciary or anot!er ad,isin$ (an-.
d0 T!is messa$e is recei,ed (y t!e (eneiciary Ban- to (e return documents immediately
to t!e
F. 9nder SWI.T 3T A%' ormat is used or sendin$
a0 T!is messa$e is sent (y t!e issuin$ (an- to t!e payin$ )ne$otiatin$ (an-. It is used to
ad,ise t!e recei,er
t!at documents recei,ed "it! discrepancies !a,e (een ta-en up.
(0 T!is messa$e is sent (y issuin$ (an- t!en automatically it is deemed to !a,e accepted
t!e
c0 T!is messa$e is sent (y issuin$ (an- t!en automatically it is deemed to !a,e reCected
t!e
F. 9nder SWI.T 3T A8B ormat is used or sendin$
a0 T!is messa$e is sent to t!e issuin$ (an-# (y t!e (an- to "!ic! documents !a,e (een
presented.
(0 T!is is a re>uest or aut!orisation to ta-e up documents "!ic! are discrepant.
5. 9nder SWI.T 3T A86 ormat is used or sendin$
a0 T!is messa$e is sent (y t!e payin$)ne$otiatin$ (an- to t!e issuin$ (an-# to ad,ise t!at
documents
"ere presented in accordance "it! t!e credit terms and are (ein$ or"arded. It is also
used as a pre1
notiication o a reim(ursement claim rom t!e claimin$ (an- to t!e issuin$ (an-.
(0 T!is is a re>uest or aut!orisation to ta-e up documents "!ic! are discrepant.
4B. 9nder SWI.T 3T A6B ormat is used or sendin$
a0 3essa$e sent (y issuin$ (an- to t!e reim(ursin$ (an-
(0 It is t!e messa$e t!e conirmin$ (an- sends to t!e issuin$ Ban-
c0 T!is messa$e is recei,ed (y t!e (eneiciary Ban- to (e return documents immediately
to t!e
44. 9nder SWI.T 3T A2B ormat is used or sendin$
a0 T!is messa$e is sent (et"een (an-s in,ol,ed in t!e issuance o $uarantee. It is used to
issue a
$uarantee or re>uest a recei,er to issue a $uarantee
(0 T!is messa$e is sent (y an ad,isin$ (an-# "!ic! !as recei,ed a documentary credit
rom t!e
issuin$ (an-# to t!e (an- ad,isin$ t!e (eneiciary or anot!er ad,isin$ (an-.
c0 T!is messa$e is sent (y t!e issuin$ (an- to t!e payin$ )ne$otiatin$ (an-. It is used to
ad,ise t!e
recei,er t!at documents recei,ed "it! discrepancies !a,e (een ta-en up.
4'. 9nder SWI.T 3T A54 ormat is used or sendin$
(. Ad,ice o c!ar$es# interest and ot!er adCustments
c. Re>uest or payment o c!ar$es# interest and ot!er e+penses
4%. W!at is t!e meanin$ o INC<TER3S*
40 T!is is a code "ord (et"een t!e Buyer and seller "!ile i+in$ t!e Price
'0 T!e Inco terms rules e+plain a set o t!ree letter trade terms "!ic! is most commonly
used in trade
%0 T!e ICC /International C!am(er o Commerce0 pu(lis!ed set o international rules or
t!e
T!e num(er o Inco terms rules !as (een reduced rom 4% /Inco term'BBB0 to 44 / Inco
term 'B4B0.
PRECI<9S 3ETAES B9SINESS
/;<ED ) SIEVER)PEATIN930
4. RBI permitted nominated a$encies or import o precious metals to sell in t!e domestic
mar-et
a. 45.A.455F (. 'B.44.455A
c. 'B.4B.455A d. none o t!e a(o,e
'. <ne o t!e traditional unit o ;old "ei$!t is t!e Troy ounce. <ne troy ounce is
e>ui,alent to
a. %4.4B%6FBA $rams o ine $old (. 'F.5B $rams o t!e ine $old
c. '5.4B8B $rams o ine $old d. None o t!e a(o,e
a. T!e purity o t!e $old (. 3i+in$ t!e $old ore "it! alloy
c. Certiyin$ t!e "ei$!t at Eondon d. None o t!e a(o,e
6. <ur (an- commenced $old (usiness on
a. 4Bt! No,em(er 455A (. 'Bt! No,em(er 455A
c. 'Bt! Decem(er 455A d. 'nd Ianuary 455F
a. ' $ms. (. 6 $ms.c. F $ms d. 4B $ms e. 8B $ms .4BB $ms $.
all o t!e a(o,e i. No" our stopped sellin$ ;old coins
2. W!at is t!e ma+imum amount a resident can deposit "it! our Ban- in t!e orm o
;old*
a0 4BBB $rams "it! reerence to Treasury department
(0 4BBB $rams "it!out reerrin$ to Treasury department
c0 T!ere is no ceilin$ on t!e deposit o ;old.
A. W!at is t!e minimum and ma+imum period or ;old deposit*
a0 Period o deposit "ill (e minimum 2 mont!s and ma+imum A years
(0 Period o deposit "ill (e minimum 4' mont!s and ma+imum 4B years
c0 Period o deposit "ill (e minimum 2 mont!s and ma+imum 8 years
d0 Period o deposit "ill (e minimum 4' mont!s and ma+imum 8 years
F.W!at is t!e ma+imum period t!e Ban- can e+tend ;old loan or e+port o Ie"ellery*
a0 Since it is li-e a pac-in$ credit ma+imum 5B days
(0 Wit! AD&s special po"ers it can (e e+tended to 4FBdays
c0 Wit! o,erdue interest it can (e e+tended up to '4B days
d0 T!e ma+imum period is 'AB days "it! normal interest.
5. W!at is t!e minimum amount o ;old deposit is accepta(le to our Ban-*
a0 4BBB $rams "it! reerence to Treasury department
(0 4BBB $rams "it!out reerrin$ to Treasury department
c0 T!ere is no ceilin$ on t!e deposit o ;old.
4. E+port credit $uarantee corporation o India Etd. /EC;C0 is oerin$
EC;C
c. Policies to t!e (an-ers and $uarantees to t!e e+porters
d. Policies to t!e e+porters and Insurance co,er to t!e (an-ers
'. T!e ollo"in$ is not co,ered under t!e s!ipments /Compre!ensi,e ris-s0 policy issued
(y EC;C
a. insol,ency o t!e o,erseas (uyer
(. o,erseas (uyers&s ailure to accept t!e $oods
c. Ci,il "ar in t!e (uyers& country
d. Disputes (et"een e+porter and t!e (uyer relatin$ to t!e >uantity o t!e $oods
a. Speciic $uarantee or pres!ipment ad,ances
(. Speciic $uarantee or post s!ipment ad,ances
e. "!ole turno,er $uarantee or pres!ipment ad,ances as "ell as or post s!ipment
6. T!e percenta$e o co,er under ECIB1/WT1PC0 is
a. A8D (. 28 D c. 5BD d. JaJ # J(J AND C
8. T!e premium rate under ECIB1 /WT1PC0
(. A paise per Rs.4BB per mont!
c. F paise per Rs.4BB per mont!# paya(le on daily a,era$e products
d. 2 paise per Rs.4BB per mont!# paya(le on t!e a,era$e outstandin$ or t!e mont!# i in
case o EC and A paise in case o non1EC
2. T!e percenta$e o co,er under t!e "!ole turno,er post s!ipment $uarantee or
ad,ances $ranted
to e+porters !oldin$ s!ippers policy
a. 5BD o t!e eli$i(le sum or non small e+porters
(. 58D o t!e eli$i(le sum or small e+porters
c. 58 D uniormly o t!e eli$i(le sum or all e+porters
d. /a0 or /(0 a(o,e . e. None o t!e a(o,e
A. In our (an- "e co,er pac-in$ credit ad,ances to e+porters under ECIB1PC
a. Ad,ances co,ered (y irm orders only (. Ad,ances co,ered (y ECs
c. a and ( d. None o t!e a(o,e
a. Principal outstandin$ under pac-in$ credit and no interest
(. Pac-in$ credit amount plus interest
c. Pac-in$ credit amount plus interest de(ited to t!e account up to 4FB days only
5. T!e premium rate under ECIB1 /WT1PS0
a. 2.8B paise perRs.4BB per mont!
(. A paise per Rs.4BB per mont!
c. F paise per Rs.4BB per mont!# paya(le on daily a,era$e products
d. 2 paise per Rs.4BB per mont!# paya(le on t!e a,era$e outstandin$ or t!e mont!# and
(ills
4B. W!at is t!e ma+imum amount t!at "ill settled (y ECIB in a year under WT1PS*
Rs.4BBB Crores durin$ a calendar year
Rs.FBB Crores durin$ a calendar year
44. W!at are t!e terms and conditions up to "!ic! WT1PC can (e co,ered (y our Ban-*
a0 Accounts o e+porters classiied as Standard Assets as per RBI norms
(0 Eimits not e+ceedin$ Rs.4BB lacs sanctioned (y Ban-)Branc! at our o"n discretion
c0 A notiication o suc! limits in prescri(ed ormat to (e iled "it!in %B days o sanction
4'. W!at is meant (y Report o deault under EC;C*
a0 A KReport o DeaultL in respect o an account s!all !a,e to (e su(mitted (y t!e (an-
"it!in one
mont! rom t!e date o callin$ up o ad,ances (y t!e (an- or "it!in our mont!s rom
t!e due
date)e+tended due date o t!e outstandin$ PC and o t!e t"o "!ic!e,er is earlier
(0 A KReport o DeaultL in respect o an account s!all !a,e to (e su(mitted (y t!e (an-
"it!in 2
mont!s rom declarin$ t!e account as NPA .
c0 9nless t!e report o deault is su(mitted t!e e+porter "ill not $et !is claim under
Buyer&s
4%. W!at is t!e time rame "it!in "!ic! t!e Ban- !as to ma-e a claim under WT1PC
/ECIB0*
a0 T!e (an- s!ould ile a claim in respect o an account "it!in si+ mont!s rom t!e date
o report o
(0 T!e (an- s!ould ile a claim in respect o an account "it!in a mont! rom t!e date o
c0 T!e (an- s!ould ile a claim in respect o an account "it!in a mont! rom t!e date o
46. W!at is t!e ma+imum lia(ility o EC;C to"ards t!e Ban- under WT1PS /ECIB0*
a0 T!e 3a+imum Eia(ility under t!e ECIB i.e.# t!e ma+imum amount up to "!ic! claims
"ill (e paid to
t!e (an- or t!e Post s!ipment credit ad,ances $ranted durin$ t!e ECIB co,er period o
one year is
(0 T!e 3a+imum Eia(ility under t!e ECIB i.e.# t!e ma+imum amount up to "!ic! claims
"ill (e
paid to t!e (an- or t!e Post s!ipment credit ad,ances $ranted durin$ t!e ECIB co,er
period
c0 T!e 3a+imum Eia(ility under t!e ECIB i.e.# t!e ma+imum amount up to "!ic! claims
"ill (e
paid to t!e (an- or t!e Post s!ipment credit ad,ances $ranted durin$ t!e ECIB co,er
period
.DIs).IIs)<DIs
4. W!at is t!e procedure or recei,in$ .orei$n Direct In,estment in an Indian company*
a0An Indian company may recei,e .orei$n Direct In,estment under t!e t"o routes1
Automatic
(0 .DI is allo"ed under t!e automatic route "it!out prior appro,al eit!er o t!e
;o,ernment or
t!e Reser,e Ban- o India in all acti,ities)sectors as speciied in t!e .DI Policy
c0 .DI in acti,ities not co,ered under t!e automatic route re>uires prior appro,al o t!e
;o,ernment "!ic! are considered (y t!e .orei$n In,estment Promotion Board /.IPB0#
Department o Economic Aairs# 3inistry o .inance.
'. W!at are t!e orms in "!ic! (usiness can (e conducted (y a orei$n company in India*
a0 A orei$n company may set up (usiness operations in India as a company under t!e
Companies Act# 4582# as a Ioint Venture or a W!olly <"ned Su(sidiary.
(0 Set up a Eiaison <ice ) Representati,e <ice or a ProCect <ice or a Branc! <ice
o t!e
orei$n company "!ic! can underta-e acti,ities permitted under t!e .orei$n E+c!an$e
3ana$ement Re$ulations# 'BBB.
%. W!at are t!e instruments or recei,in$ .orei$n Direct In,estment in an Indian
company*
a0 .orei$n in,estment is rec-oned as .DI only i t!e in,estment is made in e>uity s!ares.
(0 .ully and mandatorily con,erti(le preerence s!ares
c0 .ully and mandatorily con,erti(le de(entures
d0 Wit! t!e pricin$ (ein$ decided upront as a i$ure or (ased on t!e ormula t!at is
6. W!ic! are t!e sectors "!ere .DI is not allo"ed in India# (ot! under t!e Automatic
Route as "ell as
a0A$ricultural /e+cludin$ .loriculture# 7orticulture# De,elopment o seeds# Animal
7us(andry#
Pisciculture and culti,ation o ,e$eta(les# mus!rooms# etc. under controlled conditions
and ser,ices related to a$ro and allied sectors0 and Plantations acti,ities /ot!er t!an Tea
(07ousin$ and Real Estate (usiness /e+cept de,elopment o to"ns!ips# construction o
residential)commercial premises# roads or (rid$es
c0 Tradin$ in Transera(le De,elopment Ri$!ts /TDRs0.
d0 3anuacture o ci$ars # c!eroots# ci$arillos and ci$arettes # o to(acco or o to(acco
e0 Atomic Ener$y# Eottery Business# ;am(lin$ and Bettin$# Business o C!it .und &
Nid!i
8. <n receipt o s!are application money rom t!e .orei$n In,estor "!at is t!e
procedure to (e ollo"ed ater in,estment is made under t!e Automatic Route or "it!
a0 T!e Indian company !as to report to RBI "it!in %Bdays "it! H@C details o t!e
(0 T!e Indian company !as to issue s!ares "it!in 4FB days rom t!e date o in"ard
remittance "!ic! ot!er"ise "ould result in t!e contra,ention ) ,iolation o t!e .E3A
2. 9pon issue o s!ares to non1resident in,estors "it! in !o" many days it !as to (e
reported to RBI*
a0 Wit!in %B days rom t!e date o issue o s!ares# a report in .orm .C1;PR1 PART A
to$et!er
"it! t!e ollo"in$ documents s!ould (e iled "it! t!e .orei$n E+c!an$e Department#
Re$ional
<ice concerned o t!e Reser,e Ban- o India.
(0 Certiicate rom t!e Company Secretary o t!e company acceptin$ in,estment rom
persons
resident outside India certiyin$ t!at t!e company !as complied "it! t!e procedure or
issue
o s!ares as laid do"n under t!e .DI sc!eme.
c0 T!e in,estment is "it!in t!e sectoral cap ) statutory ceilin$ permissi(le under t!e
Automatic
Route o t!e Reser,e Ban- and it ulills all t!e conditions laid do"n or in,estments
under t!e
Automatic Route or i $o,ernment route t!e details must (e pro,ided.
A. W!at are t!e $uidelines or transer o e+istin$ s!ares "!ere t!en pricin$ $uidelines
not met as per
.E3A rom non1residents to residents *
a0 T!e ori$inal in,estment must (e as per .DI policy
(0 T!e pricin$ or t!e transaction is compliant "it! t!e speciic)e+plicit# e+tant .
c0 Rele,ant SEBI re$ulations ) $uidelines suc! as IP<# Boo- (uildin$# (loc- deals#
delistin$# e+it#
open oer) su(stantial ac>uisition ) SEBI SAST# (uy (ac- are met
d0 C!artered Accountants Certiicate to t!e eect t!at compliance "it! t!e rele,ant SEBI
re$ulations ) $uidelines as indicated a(o,e is attac!ed to t!e orm .C1TRS to (e iled
"it! t!e
/T!e term Mtranser& is deined under .E3A as includin$ Nsale# purc!ase# ac>uisition#
mort$a$e# pled$e# $it# loan or any ot!er orm o transer o ri$!t# possession or lienL
OSection
F. Can a person resident in India transer security (y "ay o $it to a person resident
outside
(0 @es# AD&s !a,e po"ers ,ested upto 9SD A8#BBB
c0 @es only "it! t!e appro,al o RBI and RBI "ill permit (ased on t!e relations!ip o
donor #,alue
not e+ceedin$ 9SD 8B#BBB)#and sectoral cap # not e+ceedin$ 8D o t!e paid up captial o
t!e
5. .orei$n institutional in,estor can in,est in ;o,ernment securities*
a0 SEBI re$istered .II may purc!ase# on repatriation (asis# dated ;o,ernment securities)
treasury (ills# listed non1con,erti(le de(entures) (onds issued (y an Indian company and
units o domestic mutual unds eit!er directly rom t!e issuer o suc! securities or
t!rou$! a
re$istered stoc- (ro-er on a reco$nised stoc- e+c!an$e in India.
(0 SEBI re$istered .II may purc!ase# on non repatriation (asis Dated ;o,ernment
securities
/ot!er t!an (earer securities0 or treasury (ills or units o domestic mutual undsP 9nits o
3oney 3ar-et 3utual .unds in IndiaP and National Plan)Sa,in$s Certiicates
4B. W!et!er SEBI re$istered .II can in,est in Tier I and Tier II instruments issued (y
(an-s in India*
a0 In,estment (y all .IIs in Rupee denominated Perpetual De(t instruments /Tier I0
s!ould not
e+ceed an a$$re$ate ceilin$ o 65 per cent o eac! issue and in,estment (y indi,idual .II
s!ould not e+ceed t!e limit o 4B per cent o eac! issue.
(0 In,estment (y .IIs in Rupee denominated De(t Capital instruments /Tier II0 s!all (e
"it!in
t!e limits stipulated (y SEBI or .II in,estment in corporate de(t instruments.
c0 In,estment (y .IIs in Rupee denominated 9pper Tier II Instruments raised in Indian
Rupees
"ill (e "it!in t!e limit prescri(ed (y t!e SEBI or in,estment in corporate de(t
instruments.
44. W!et!er SEBI re$istered .II can in,est in Indian Depository Receipts /IDRs0*
a0 SEBI re$istered .IIs !a,e (een permitted to in,est# purc!ase# !old and transer IDRs
o eli$i(le companies resident outside India and issued in t!e Indian capital mar-et# in
accordance "it! t!e.E3A $uidelines.
(0 T!ere "ould (e an o,erall cap o 9SD 8 (illion or raisin$ o capital (y issuance o
IDRs (y
eli$i(le orei$n companies in Indian mar-ets. T!is cap "ould (e a-in to t!e caps imposed
or
.II in,estment in de(t securities and "ould (e monitored (y SEBI.
c0 IDRs s!all not (e redeema(le into underlyin$ e>uity s!ares (eore t!e e+piry o one
year
period rom t!e date o issue o t!e IDRs.
4'. . W!at is t!e meanin$ o o,erseas direct in,estments /<DI0*
a0 It is t!e re,erse o .orei$n Direct In,estment /.DI0 i.e. Indian direct in,estment
a(road.
(0 Ioint Ventures)W!olly <"ned Su(sidiaries a(road promote economic co1operation
(et"een
c0 T!ey result in transer o tec!nolo$y and s-ills# s!arin$ t!e results o Researc! &
De,elopment# access to t!e $lo(al mar-et# promotion o t!e (rand ima$e# $eneration o
employment and utili=ation ra" materials a,aila(le in India and t!e !ost country
d0 Inte$ration o t!e Indian economy "it! t!e rest o t!e "orld "it! all its attendant
(eneits is
ac!ie,ed t!rou$! o,erseas in,estment.
4%. Can a resident in India permitted to purc!ase ) ac>uisition o securities a(road*
a0 ;eneral permission !as (een $ranted to persons /indi,idual0 resident in India or
purc!ase )
ac>uisition o securities out o unds !eld in t!e R.C accountP
(0 As (onus s!ares on e+istin$ !oldin$ o orei$n currency s!aresP
c0 W!en not permanently resident in India# rom t!e orei$n currency resources outside
India.
d0 ;eneral permission is also a,aila(le to sell t!e s!ares so purc!ased or ac>uired.
e0 A resident Indian can remit up to 9SDA8#BBB)1 per inancial year under t!e Ei(eralised
Remittance Sc!eme /ERS0# or permitted current and capital account transactions
includin$
0 T!e resident indi,idual is allo"ed to set up)ac>uire IV)W<S o,erseas "it!in t!e ERS
limit "it!
eect rom Au$ust 8# 'B4% in terms o .E3A Notiication No. '2% su(Cect to t!e terms
and
46. W!at is direct in,estment outside India*
Direct in,estment outside India means in,estments# eit!er under t!e Automatic Route or
t!e Appro,al
Route# (y "ay o contri(ution to t!e capital or su(scription to t!e 3emorandum o
Association o a
orei$n entity# si$niyin$ a lon$1term interest in t!e o,erseas entity /settin$ up ) ac>uirin$
a Ioint
Venture /IV0 or a W!olly <"ned Su(sidiary /W<S0.
An Indian Party is a company incorporated in India or a (ody created under an Act o
Parliament or
a partners!ip irm re$istered under t!e Indian Partners!ip Act 45%' and any ot!er entity
in India as
W!en more t!an one suc! company# (ody or entity ma-es in,estment in t!e orei$n
entity# suc!
com(ination "ill also orm an KIndian PartyL.
42. Can Indian corporate in,est o,erseas ot!er t!an (y "ay o direct in,estment*
@es. Eisted Indian companies can in,est up to 8B D o t!eir net "ort! as on t!e date o
t!e last
audited Balance S!eet in o,erseas companies# listed on a reco$ni=ed stoc- e+c!an$e# or
in t!e rated
de(t securities issued (y suc! companies.
4A. W!at are t!e in,estment opportunities or Domestic Venture Capital .unds*
Domestic Venture Capital .unds re$istered "it! SEBI may in,est in e>uity and e>uity
lin-ed
instruments o o1s!ore VC.s su(Cect to an o,erall limit o 9SD 8BB million.
4F. Can an Indian Party open)maintain an account in .orei$n currency a(road*
Wit! eect rom April '# 'B4'# an Indian party is allo"ed to open# !old and maintain
.orei$n Currency
Account /.CA0 a(road or t!e purpose o o,erseas direct in,estments "!ere,er t!e !ost
country
re$ulation stipulate t!e same su(Cect to certain terms and conditions.
45. Can a loan $i,en to an o,erseas ,enture (e con,erted into e>uity* I yes "!at are t!e
reportin$
@es# a loan can (e con,erted into e>uity and reported to RBI (y a letter.
'B. W!et!er orei$n institutional in,estors /.IIs0 "ill (e allo"ed to in,est in IIBs
/Inlation Inde+ed
IIBs "ould (e ;o,ernment securities /;1Sec0 and t!e dierent classes o in,estors
eli$i(le to in,est in
;1Secs "ould also (e eli$i(le to in,est in IIBs.
.IIs "ould (e eli$i(le to in,est in t!e ort!comin$ IIBs (ut su(Cect to t!e o,erall cap or
t!eir
in,estment in ;1Secs /currently 9SD '8 (illion0.
IT INITIATIVES)I3PS)P<S
4. A series o instructions t!at tells a computer "!at to do and !o" to do is called
a. Pro$ramme (. Command c. user response d. processor
a. .ile (. Tools c. Special c. Edit
a. Binary system (. di$ital (yte. c.Binary di$it d.(inary unit.
6. An output de,ice t!at let you see "!at t!e computer is doin$.
a. a dis- dri,e (. monitor1 screen c. s!it -ey d. printer
a. to pro,ide e+ternal stora$e o te+t
(. to communicate "it! t!e operator
c. to read# interpret and process t!e inormation and instruction.
a.World Wor- We( (. Wide "or- "e(
c. "ide "orld "e( d.World "ide "e(
a. Eocal Access Net"or- (. Eocal Area Net Wor-
c. Eo$ical Access Net"or- d. Eo$ical Area Net Wor-
a. Special application (. Word processor c. Spread S!eet d.Scanner Document
a. Blaise Pascal (. C!arles Ba((a$e c. Adam Smit! d. Connard :use.
4B. "!ic! process c!ec-s to ensure t!e componenets o t!e computer are operatin$ and
connected
a. Bootin$ (. Processin$ c. sa,in$ d. editin$
a. 7omepa$e (.Inde+ c.Ia,a Script d. Boo- mar-
4'. Computors use t!e111111 num(er system to store data and perorm calculations.
a. Decimal (. 7e+a decimal c. octal d. BinaryQ
4%. 11111is t!e process o indin$ errors in sot"are code
a.Compilin$ (. Testin$ c.Runnin$ d. De(u$$in$
a. Addin$ more componenets to your net"or-
(. Protectin$ data (y copyin$ it rom t!e ori$inal source to a dierent destination
c. .ilterin$ old data rom t!e ne" data
48. T"o or more computers connected to eac! ot!er o s!arin$ inormation orm a
Eia(ility Insurance
4. Name o t!e company oerin$ lia(ility insurance *
a0 ;eneral insurance (0 Eie Insurance Corporation o Indiac0 S E B I d0 9ni,eralSompo
'.Premium or Eia(ility Insurance is to (e reco,ered rom*
a09pront at t!e time o dis(ursement o loan (0 In e>uated mont!ly instalments o,er t!e
entire
period o t!e loan c0 At t!e discretion o t!e (an- d0N < A
%. W!at is t!e 3a+imum maturity a$e o t!e insured*
a0 AB years (0 28 years c02B years d08B years
6. W!at is t!e 3inimum amount o t!e loan or eli$i(ility or co,er
a0No minimum (0Rs 8 la-!s c0 Rs4 la-! d0Rs4BBBB
8. W!at is t!e 3a+imum amount o t!e loan or eli$i(ility co,er
a0Rs 8B la-!s (0Rs A8 la-!sc0Rs 4BB la-!s c0 N<A
2.Insurance co,er is a,aila(le rom "!ic! date *
a0Day one (0 ater a period o 68 days c0 Ater a period o 68 days / e+cept deat! due to
accident0
A.No medical e+amination o t!e (orro"ers re>uired or t!is loan/e+cept or a simple
a0 up to 'B la-!s (0 up to %B la-!s c0upto 4B la-!s d0 upto 8 la-!s
F. W!at is t!e ma+imum lia(ility co,ered (y t!is insurance*
a0 Sanctioned lia(ility (0 outstandin$ lia(ility c0 Rs 4B la-!s d0 N < A
5. Eia(ility Insurance !as (een classiied into
a0 Sc!eme A (0 Sc!eme A & B c0 Sc!eme B d0 N< A
4B. Commission under Eia(ility insurance sc!eme is
EDP
4. W!en "as t!e Inormation Systems Security policy ramed (y our Ban-*
a04555 (0 'BBB c0 'BB% d0 N<A
'. EDP audit o (ranc!es are conducted (y*
a0REC (0C< Inspector c0E+ternal Auditors d0N < A
%.T!e pass"ords used (y t!e sta s!ould (e c!an$ed
a0 <nce in si+ mont!s (0 periodicallyc0 once in a mont!d0once in a "ee-
6.c!e>ue (oo- details issued to customers s!ould (e entered into t!e system
a0at end o t!eday (0immediately c0once in a "ee- d0 at a con,enient time
8.Co( rotation o t!e sta mem(ers to (e done
a0<nce in t"o years (0 Periodicallyc0 <nce in si+ mont!s d0N<A
2. <ption or und transer in t!e case o internet (an- customers can (e ena(led
a0All internet customers (0 Corporate customers c0 customers "!o !as re>uested or t!at
A.T!e cards)PIN 3ailers s!ould (e -ept
a0 9nder dualcustody (0 under loc- and -ey c0 in anot!er (ranc! d0 Any"!ere in t!e
(ranc!
CBS
'. W!at is t!e ma+imum amount t!at can (e "it!dra"n t!rou$! a W)S rom anot!er
(ranc!*
%. W!at is t!e ma+imum amount t!at can (e "it!dra"n t!rou$! a c!e>ue rom ot!er
(ranc!*
6. W!at is t!e ma+imum amount t!at can (e transerred rom one (ranc! to anot!er*
8. W!at is t!e ma+imum amount t!at can (e de(ited t!rou$! clearin$ in anot!er (ranc!*
2. W!at is t!e c!ar$es to (e paid or ma-in$ remittance*
A. W!at is t!e ma+imum amount t!at can (e remitted t!rou$! anot!er (ranc! in an s(
a)c*
F. W!at is t!e ma+imum amount t!at can (e remitted t!rou$! anot!er (ranc! to a loan
a)c*