Regulation 6A - Permission for Direct Investment in Equity of Companies Registered Overseas - Foreign Exchange Management (Transfer Or Issue of Any Foreign Security) Regulations, 2000

Has been superseded vide Notification No. 120/2004 dated 7/7/2004 1 6A. Permission for Direct Investment in Equity of Companies Registered Overseas A person resident in India, being an individual or a listed Indian company or a mutual fund registered in India, may invest in the shares of an overseas company which is listed on a recognised stock exchange and has a share holding in its name of not less than 10% in any listed Indian company as on 1st January of the year of investment, provided that :- (i) in the case of investment by the listed Indian company, the investment shall not exceed 25% of its net worth shown in its latest audited balance sheet; (ii) in the case of investment by Mutual Fund, the investment shall not exceed the ceiling stipulated by Securities Exchange Board of India (SEBI) from time to time; (iii) every transaction relating to purchase and sale of shares of the overseas company shall be routed through the designated branch of an authorised dealer in India. **************** NOTES:- 1. Inserted vide Notification No. 088/2003 dated 01-04-2003 , w.e.f. 01-04-2003.