A procedure refers to a series of the related task which make-up a chronological sequence. It is an established way of performing the work to be accomplished. Procedural implementation level concerned with the completion of all statutory and other formalities which have been prescribed by the Government both at Central and State. The major procedural requirements involved in the strategy implementation process are discussed as under:
(i) Licensing Requirements
The licensing provisions have been provided under the Industries (Development and Regulation) Act, 1951. In many industries, an industrial license is required particularly in those industries which are perceived to be injurious to public health.
(ii) FEMA Requirements
Under the provisions of FE MA, all companies registered under the Companies Act, 1956 having a foreign shareholding in excess of 50%, and all foreign companies are required to obtain permission from the Reserve Bank of India, regarding different activities like fresh investments, issue of shares and debentures, acquisition of an Indian business unit, etc.
(iii) Foreign Collaboration Procedures
The emergence of joint venture projects with foreign collaborators brings technology and participation in equity Besides, joint ventures, Indian companies may enter technology agreements for the import of technical know-how. In the case of a joint venture and technology agreement, prior approval has to be received from the Central
(iv) Capital Issue Requirements
Under the provisions of the Securities Exchange and Board of India Act, 1992, SEBI exercises some controls over capital issues to the public in the form of adherence to disclosure norms. For this purpose, SEBI scrutinizes the prospectus of the company intending to enter the capital market to ensure that relevant information has been provided in the prospectus on the basis of which the public can analyze the worth of issue of shares or debentures. For raising funds from abroad by way of Global Depository Receipts, American Depository Receipts, and long term loans, prior permission of the Central Government is required.
(v) Import and Export Requirements
Import and Export requirements differ in two types of goods i.e. which are under the list of open general license and those under the restrictive list. There are fewer requirements for items falling under open general license except that the companies going for import/exports have to inform the Reserve Bank of India. However, an import and export license is required to be procured from the Ministry of Commerce in the case of items falling under the restrictive list.