Investor Presentaiton
Exit from GIFT City / IFSC
fin
SEZ / IFSC units can exit from SEZ / IFSC scheme. They have to apply for exit from SEZ / IFSC Scheme and remit the
funds back to India, however they will be have to follow rules and regulations mentioned in SEZ Act and Rules as well
as under RBI SEBI norms for winding up of WOS / JVS abroad.
From RBI Perspective
Units can disinvest WOS / JVs by way of sale or shares or liquidation or merger subject to RBI norms and other
conditions of Write off Investment or No write off investment.
From SEZ Perspective
Units have two options
(1) The Unit may choose to step out of the SEZ with the approval of the DC and such exit shall be subject to payment
of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares
and finished goods in stock and if the unit has not achieved positive Net Foreign Exchange, the exit shall be subject to
penalty that may be imposed under the Foreign Trade (Development and Regulation) Act, 1992. The following
conditions shall apply to the unit winding up: -
penalty imposed by the competent authority would be paid and in case an appeal against an order-imposing
penalty is pending, exit shall be considered if the unit has obtained a stay order from competent authority and has
furnished a Bank Guarantee for the penalty adjudicated by the appropriate authority unless the appellate
authority makes a specific order exempting the Unit from this requirement.
Khandhar Mehta & Shah | Chartered Accountants
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