Answer: Investment made by an Investment Vehicle into an Indian company or an LLP will be indirect foreign investment for the investee company or the LLP, as the case may be, if either the Sponsor or the Manager or the Investment Manager (i) is not owned and not controlled by resident Indian citizens or (ii) is owned or controlled by persons resident outside India.

The NBFCs accepting public deposits shall furnish to RBI Certificate from the Auditors regarding solvency of the company in repayment of the deposits as and when the claims arise; Balance Sheet and the Auditors’ Reports submitted to the Board of Directors as also to the Shareholders of the company; Statutory Annual Return on deposits in the First Schedule; Quarterly Return on liquid assets; Half-yearly Return on prudential norms; and a copy of the Credit Rating once a year alongwith one of the Half-yearly Returns on prudential norms as at (v) above.

Answer: An Alternative Investment Fund (Category III) with foreign investment can make portfolio investment in only those securities or instruments in which an FPI is allowed to invest under the Act, rules or regulations made thereunder.IV. Reporting Delays

A forged note can be identified on the basis of the security features which are present in a genuine Indian currency note. These features are easily identifiable by seeing, touching and tilting the note.

Ans: Yes, company which is a CIC and has achieved the balance sheet size of Rs.100 crore as per its last audited annual financial statement is required to apply to the Bank for registration as a CIC-SI, subject to its meeting the other conditions for being identified as systemically important CIC.

There is no prohibition on banks’ placing of funds with non-banking non-financial companies under their Public Deposit Schemes. However, investment in the Public Deposit Scheme of such companies should be classified by banks as loans/ advances in their balance sheet and returns submitted under the Banking Regulation Act, 1949 and the Reserve Bank of India Act 1934.

The NBFCs except RNBCs not accepting/holding public deposits are not required to submit to RBI their Statutory Returns in the First Schedule or the Balance Sheet or the Quarterly Liquid Asset Return or the Half-yearly Prudential Norm Return. However, all the NBFCs (other than those exempted - see answer to question No. 1) are required to be Registered with RBI and and also make sure that they continue to be eligible to remain Registered. RBI has powers to cause Inspection of the Books of any company and call for any other information about its business activities. For this purpose, the NBFCs are required to furnish the information in respect of any change in the composition of their Board of Directors, address of the company and its Directors and the name/s of its Auditors.

Answer: For the transactions undertaken on or after November 7, 2017, in case of reporting delays, the person/ entity responsible for filing the reports as provided in Part IV of the Master Direction on Reporting shall be liable for payment of Late Submission Fee (LSF). The payment of LSF is an additional option for regularising reporting delays without undergoing the compounding procedure.

Counterfeiting banknotes/using as genuine, forged or counterfeit banknotes/possession of forged or counterfeit banknote/making or possessing instruments or materials for forging or counterfeiting banknotes/making or using documents resembling banknotes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the Courts of Law by fine or imprisonment ranging from seven years to life imprisonment or both, depending on the offence.

The Government of India has framed Investigation of High Quality Counterfeit Indian Currency Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought under the ambit of UAPA, 1967.

Banks can purchase letter of allotment in respect of PSU bonds subject to the following conditions.

1. The transactions (other than interbank transactions) should be undertaken only through recognized Stock Exchanges and registered brokers.

2. While purchasing the bonds, the bank should ensure that it gets a clear title to the security and the security is tradable in the secondary market.

3. The bank should prescribe its internal guidelines with the approval of the Board for undertaking such transaction.