Regulation 7 - Investment by Indian Party engaged in Financial Services Sector - FOREIGN EXCHANGE MANAGEMENT (TRANSFER OR ISSUE OF ANY FOREIGN SECURITY) REGULATIONS, 2004

7. 1 [Investment by Indian Party engaged in Financial Services Sector] 3 [ 1) Subject to the Regulations in Part I, an Indian Party engaged in financial services sector in India may make investment in an entity outside India: Provided that the Indian party (i) has earned net profit during the preceding three financial years from the financial services activities; (ii) is registered with the regulatory authority in India for conducting the financial services activities; (iii) has obtained approval from the concerned regulatory authorities both in India and abroad, for venturing into such financial sector activity; (iv) has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India.] (2) any additional investment by an existing JV/WOS or its step down company in the Financial Services Sector shall be made only after complying with the conditions stipulated in sub-clause (1). *************** Notes 1. Title Substituted vide notification no. 192/2009 dated 25/5/2009 with effect from 6/9/2006, before it was read as, Investment in Financial Services Sector 2. Substituted vide notification no. 192/2009 dated 25/5/2009 with effect from 6/9/2006, before it was read as, (1) Subject to the Regulations in Part I, an Indian party may make investment in an entity outside India engaged in financial services activities: Provided that the Indian party i. has earned net profit during the preceding three financial years from the financial services activities; ii. is registered with the regulatory authority in India for conducting the financial services activities; iii. has obtained approval from the concerned regulatory authorities both in India and abroad, for venturing into such financial sector activity; iv. has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India. 3. Substituted vide notification no. 196/2009-RB dated 28-7-2009 w.e.f 6.9.2006, before it was read as, 1) Subject to the Regulations in Part I, an Indian Party engaged in financial services sector in India may make investment in an entity outside India.