TMI BlogPurchase and sale of shares/ convertible debentures by a Non-resident Indian (NRI) on non-repatriation basis - [See Regulation 5 (3) (ii)]X X X X Extracts X X X X X X X X Extracts X X X X ..... hip firm incorporated outside India and owned and controlled by non-resident Indians, may acquire and hold, on non-repatriation basis, equity shares, convertible preference shares, convertible debenture, warrants or units, which will be deemed to be domestic investment at par with the investment made by residents. Without loss of generality, it is stated that a. An NRI may acquire, on non-repatriation basis, any security issued by a company without any limit either on the stock exchange or outside it. b. An NRI may invest, on non-repartition basis, in units issued by an investment vehicle without any limit, either on the stock exchange or outside it. c. An NRI may contribute, on non-repatriation basis, to the capital of a partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward remittance through normal banking channel from abroad or out of funds held in NRE/FCNR/NRO account maintained with a bank in India: Sale/ Maturity proceeds 4. The sale/maturity proceeds (net of applicable taxes) of the securities or units acquired under this Schedule shall be credited only to NRO account irrespective of the type of account from which the considerations for acquisition were paid. 5. The amount invested under this Scheme and the capital appreciation thereon shall not be allowed to be repatriated abroad.] ************* Note : 1. Substituted vide Notification No. 179/2008 dated 22/08/2008 , before substitution as inserted vide Notification No. 094/2003 dated 18/6/2003 , it was read as, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporation (IFC), Commonwealth Development Corporation (CDC),. Deutsche Entwicktungs Gescelscchaft (DEG). (b) transfer of shares of an Indian company engaged in Information Technology sector or in the mining sector, if the existing joint venture or technology transfer/trade mark agreement of the person to whom the shares are to be transferred are also in the Information Technology sector or in the mining sector for same area/mineral. (C) investment to be made by Venture Capital: Funds registered with SEBI; investments by multinational financial institutions or where in the existing joint-venture investment by either of the parties is less than 3%; or where the existing joint venture/collaboration is defunct or sick. 3. Substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated June 30, 2014 , before it was read as, shares or convertible debentures 14. Substituted vide Not. 361/2016-RB - Dated 15-2-2016 , before it was read as, SCHEDULE 4 [See Regulation 5 (3) (ii)] Purchase and sale of 3 [shares or convertible debentures or warrants] by a Non-resident Indian (NRI) [***] on non-repatriation basis 1. Prohibition on purchase of 4 [shares or convertible debentures or warrants ] of certain companies No purchase of 13 [shares or convertible debentures or warrants] of an Indian company shall be made under this Scheme if the company concerned is a Chit Fund or a Nidhi company or is engaged in agricultural/plantation activities or real estate business or construction of farm houses o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) The sale/maturity proceeds (net of applicable taxes) of 11 [shares or convertible debentures or warrants ] purchased under this Scheme shall be credited only to NRSR account where the purchase consideration was paid out of funds held in NRSR account and to NRO or NRSR account at the option of the seller where the purchase consideration was paid out of inward remittance or funds held in NRE/FCNR/NRO/NRNR account. (ii) The amount invested in 12 [shares or convertible debentures or warrants] under this Scheme and the capital appreciation thereon shall not be allowed to be repatriated abroad. - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Management India - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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