Regulation 21 - Prohibition on issue of foreign security by a person resident in India - FOREIGN EXCHANGE MANAGEMENT (TRANSFER OR ISSUE OF ANY FOREIGN SECURITY) REGULATIONS, 2004

Part III Investments in Foreign Securities other than by way of Direct Investment 21. Prohibition on issue of foreign security by a person resident in India. (1) Save as otherwise provided in the Act or in sub-regulation (2), no person resident in India shall issue or transfer a foreign security. (2) A person resident in India, being an Indian Company or a Body Corporate created by an Act of Parliament. (i) may issue FCCBs not exceeding 2 [ USD 750 Million ] to a person resident outside India in accordance with and subject to the conditions stipulated in Schedule I. (ii) may issue FCCBs beyond 3 [ USD 750 Million ] with the specific approval of the Reserve Bank. 4 [ Provided that under these Regulations, the Reserve Bank may, in consultation with the Government of India,change / prescribe for the automatic as well as the approval route of FCCBs, any provision or proviso for issuance of FCCBs. ] 1 [(iii) may issue Foreign Currency Exchangeable Bonds to a person resident outside India in accordance with and subject to the conditions specified in Schedule IV with the specific approval of the Reserve Bank.] 5 [ Provided that under these Regulations, the Reserve Bank may, in consultation with the Government of India, change / prescribe any provision or proviso for issuance of FCEBs. ] (3) The company/body corporate referred to in sub-regulation (2), issuing the FCCBs shall, within 30 days from the date of issue, furnish a report to the Reserve Bank giving the details and documents as under: a. Total amount for which FCCBs have been issued, b. Names of the investors resident outside India and number of FCCBs issued to each of them. c. The amount repatriated to India through normal banking channels and/or the amount received by debit to NRE/FCNR accounts in India of the investors (duly supported by bank certificate). **************** Notes: 1. Inserted vide notification no. 188/2009 dated 3/2/2009 with effect from 23/9/2009. 2. Substituted vide Notification No. FEMA 231/2012-RB, Dated 30-5-2012 , before it was read as:- USD 500 Million 3. Substituted vide Notification No. FEMA 231/2012-RB, Dated 30-5-2012 , before it was read as:- US $ 500 Million 4. Inserted vide Not. 359/2015-RB - Dated 2-12-2015 5. Inserted vide Not. 359/2015-RB - Dated 2-12-2015