Section 9(2) in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
(2)[ Application for direct investment in Joint Venture/Wholly Owned Subsidiary outside India, or by way of exchange for shares of a foreign company, shall be made in Part I of the Form ODI, as prescribed by the Reserve Bank from time to time.][(2-A) An application made under sub-regulation (2) in Form ODI, as prescribed by the Reserve Bank from time to time -(a)for the purposes of investment by way of remittance from India, in an existing company outside India, shall be accompanied, by the valuation of shares of the company outside India, made -(i)where the investment is more than USD 5 (Five) million, by a Category I Merchant Banker registered with SEBI or an Investment Banker/Merchant Banker registered with the appropriate regulatory authority in the host country; and(ii)in all other cases, by a Chartered Accountant or a Certified Public Accountant;(b)for the purposes of investment by acquisition of shares of an existing company outside India where the consideration is to be paid fully or partly by issue of the Indian party's shares, shall be accompanied by the valuation carried out by a Category I Merchant Banker registered with the SEBI or an Investment Banker/Merchant Banker registered with the appropriate regulatory authority in the host country.]
