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Rule 11 - Transfer of equity instruments of an Indian company by FPI - Foreign Exchange Management (Non-debt Instruments) Rules, 2019Extract 1 [ 11. Transfer of equity instruments of an Indian company by FPI A FPI holding equity instruments of an Indian company or units in accordance with these rules, may transfer such equity instruments or units held by him in compliance with the conditions, if any, specified in the Schedules annexed to these rules, subject to the terms and conditions specified therein and by the Securities and Exchange Board of India: Provided that, - (i) prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires the Government approval; (ii) where the acquisition of equity instruments by FPI under Schedule II has resulted in a breach of the applicable aggregate FPI limits or sectoral limits the provisions of item (iii) of sub-paragraph (a) of paragraph (1) of Schedule II shall apply. ] *********** NOTES:- 1. Substituted vide Notification No. S.O. 4355(E). dated 05-12-2019 w.e.f. 17-10-2019 before it was read as 11. Transfer of equity instruments of an Indian company by FPI - A FPI holding equity instruments of an Indian company or units in accordance with these rules, may transfer such equity instruments or units so held by him in compliance with the conditions, if any, prescribed in the respective Schedules of these rules and subject to the terms and conditions prescribed hereunder and as specified by the Securities and Exchange Board of India; (1) A FPI may transfer by way of sale or gift the equity instruments of an Indian company or units held by him to any person resident outside India; Explanation : For the purposes of this rule transfer shall also include transfer of equity instruments of an Indian company pursuant to liquidation, merger, de-merger and amalgamation of entities or companies incorporated or registered outside India. Provided that.- (i) prior Government approval shall be obtained for any transfer in case the company is engaged in a sector which requires the Government approval. (ii) where the acquisition of equity instruments by FPI made under Schedule II of these rules has resulted in a breach of the applicable aggregate FPI limits or sectoral limits, the provisions of sub-paragraph a (iii) of paragraph (1) of Schedule II shall apply.
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