TMI BlogPurchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India. - [See Regulation 5 (4)]X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany; (d) units of domestic mutual funds; 68 [(e) Security Receipts (SRs) issued by Asset Reconstruction Companies up to 100 per cent of each tranche, subject to directions/guidelines of Reserve Bank of India ] (f) Perpetual Debt instruments eligible for inclusion as Tier I capital and Debt capital instruments as upper Tier II capital issued by banks in India to augment their capital (Tier I capital and Tier II capital as defined by Reserve Bank, and modified from time to time) 27 [provided that the investment by all eligible investors in Perpetual Debt instruments (Tier I)] shall not exceed an aggregate ceiling of 49 per cent of each issue, and investment by individual FII shall not exceed the limit of 10 per cent of each issue. 28 [***]; 61 [(g) ***] (h) with effect from November 3, 2011 non-convertible debentures/bonds issued by Non-Banking Finance Companies categorized as 'Infrastructure Finance Companies'(IFCs) by the Reserve Bank, 30 [***]; (i) with effect from November 22, 2011, Rupee denominated bonds/units issued by Infrastructure Debt Funds 31 [***] ; 62 [(j) ***] 36 [(k) credit enh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Mutual Fund Debt Schemes directly from the issuer or through a registered stock broker on a recognized stock exchange in India and sell through a registered stock broker on a recognized stock exchange in India or by way of buy-back or redemption by the issuer; (b) invest in primary issues of non-convertible debentures/bonds provided such non-convertible debentures/ bonds are committed to be listed within 15 days of such investment. In the event of such non-convertible debentures/bonds issued to the QFI not being listed within 15 days of issuance to the QFI for any reason, then the QFI shall immediately dispose of these non-convertible debentures/bonds either by way of sale to a third party or to the issuer and the terms of offer to QFI should contain a clause that the issuer of such debt securities shall immediately redeem/buy-back the said securities from the QFIs in such an eventuality. ] 13 [ (iv) A QFI which purchases securities under this Regulation shall open a single demat account with a Qualified Depository Participant in India. ] 32 [ (v) QFI may purchase, 49 [the following securities on repatriation basis through SEBI registered Qualified Deposito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Banks registered with SEBI may purchase, on repatriation basis, 24 [dated Government Securities, subject to the terms and conditions and the limits as stipulated by the Reserve Bank and SEBI from time to time.]. ] 34 [ (iii) Long term investors like Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds and Pension Funds and Foreign Central Banks registered with SEBI may purchase, 50 [the following securities on repatriation basis and subject to such terms and conditions as may be specified by the SEBI and the Reserve Bank from time to time]: (a) dated Government securities/ treasury bills; (b) commercial papers issued by an Indian company ; (c) units of domestic mutual funds; (d) listed non-convertible debentures/bonds issued by an Indian company; (e) listed and unlisted non-convertible debentures/bonds issued by an Indian company in the infrastructure sector, where infrastructure is defined in terms of the extant ECB guidelines; (f) non-convertible debentures/bonds issued by Non-Banking Finance Companies categorized as Infrastructure Finance Companies (IFCs) by the Reserve Bank ; ..... 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(d) units of domestic mutual funds; 70 [(e) Security Receipts (SRs) issued by Asset Reconstruction Companies up to 100 per cent of each tranche, subject to directions/guidelines of Reserve Bank of India ] (f) Perpetual Debt instruments eligible for inclusion as Tier I capital and Debt capital instruments as upper Tier II capital issued by banks in India to augment their capital (Tier I capital and Tier II capital as defined by Reserve Bank and modified from time to time) provided that the investment by all eligible investors in Perpetual Debt instruments (Tier I) shall not exceed an aggregate ceiling of 49 per cent of each issue and investment by individual RFPI shall not exceed the limit of 10 per cent of each issue; 65 [(g) ***] (h) non-convertible debentures/bonds issued by Non-Banking Financial Companies categorized as Infrastructure Finance Companies (IFCs) by the Reserve Bank; (i) Rupee denominated bonds/ units issued by Infrastructure Debt Funds; 66 [(j) ***] (k) credit enhanced bonds. 43 [ (l) listed non-convertible/redeemable preference shares or debentures issued in terms of Regulation 7 (2)of these Regulations. ] 59 [ (m) security rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits of domestic mutual funds, units of Money Market Mutual Funds in India, or National Plan/Savings Certificates.] 45 [A Non-resident Indian may, without limit, purchase on non-repatriation basis, listed non-convertible/redeemable preference shares or debentures issued in terms of Regulation 7 (2) of these Regulations. ] 56 [(2A) A non-resident Indian who subscribes to the National Pension System, under sub-paragraph (3) of paragraph (2) of this Schedule shall make payment either by inward remittance through normal banking channels or out of funds held in his NRE/FCNR/NRO account.] 5 ( 52 [2B]). A person resident outside India, being central bank of any country under the law for the time being in force in that country, may purchase and sell dated Government securities / treasury bills subject to the conditions as may be stipulated by Reserve Bank from time to time 54 [(3) A Non- Resident Indian may subscribe to National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [(5) A QFI who purchases securities under this Schedule (other than by way of Indirect Route) shall make payment out of funds held in a single non-interest bearing Rupee Account maintained with an AD bank in terms of the Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time] 4. Permission for Sale of Securities A person resident outside India who has purchased securities in accordance with this Schedule 51 [may sell/ redeem the securities subject to such terms and conditions as may be specified by the SEBI and the Reserve Bank from time to time]. 5. Remittance/credit of sale/maturity proceeds (i.) In the case of a registered Foreign Institutional Investor who has sold securities in accordance with paragraph 4, the designated branch of an authorised dealer referred to in sub-paragraph (1) of paragraph 3 may allow remittance of net sale/ maturity proceeds (after payment of taxes) or credit the net amount of sale/ maturity proceeds of such securities to the foreign currency account or Non-resident Rupee Account of the FII investor maintained in accordance with the provisions of paragraph 2 of Schedule 2. 47 [(ia) I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mutual funds either directly from the issuer of such securities or through a registered stock broker on a recognised stock exchange in India; Provided that i) the FII shall restrict allocation of its total investment between equity and debt instruments (including dated Government Securities and Treasury Bills in the Indian capital market) in the ratio of 70:30, and ii) if the FII desires to invest upto 100 per cent in dated Government Securities including Treasury Bills, non-convertible debentures/bonds issued by an Indian company, it shall form a 100% debt fund and get such fund registered with SEBI. 4. Paragraph 2A Has been inserted vide Notification No. 166/2007 dated 17/10/2007 5. Paragraph 2A inserted vide notification no. 153 dated 31-5-2007 6. Has been substituted vide Notification No. 179/2008 dated 22/08/2008 , before substitution it was read as under, 1. Permission to Foreign Institutional Investors for purchase of securities 3 A registered Foreign Institutional Investor may purchase, on repatriation basis, dated Government securities / treasury bills, non-convertible debentures / bonds issued by an Indian company, units of domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue and the total holdings of all FIIs put together shall not exceed 49 percent of the paid up value of each tranche of scheme of Security Receipts issued by the Asset Reconstruction Companies; and (iv) The investment by all FIIs in Perpetual Debt instruments (Tier I) should not exceed an aggregate ceiling of 49 per cent of each issue, and investment by individual FII should not exceed the limit of 10 per cent of each issue. The investment by FIIs in Debt capital instruments (Tier II) shall be within the limits stipulated by SEBI for Fit investment in corporate debt. 9. Substituted vide Notification No. FEMA. 242/2012-RB Dated 19-10-2012 before it was read as, 6 [ 1. Permission to Foreign Institutional Investors for purchase of securities- A registered, Foreign Institutional. Investor may purchase on repatriation basis, dated Government securities/treasury bills, listed non-convertible. debentures/bonds; commercial paper issued by an Indian company and units of domestic mutual funds, Security Receipts issued by Asset Reconstruction Companies and Perpetual Debt instruments eligible for inclusion as Tier I capital and Debt capital instruments a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction Companies provided that the total holding by a single FII in each tranche of scheme of Security Receipts shall not exceed 10 per cent of the issue and the total holdings of all FIIs put together shall not exceed 49 per cent of the paid up value of each tranche of scheme of Security Receipts issued by the Asset Reconstruction Companies; 18. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19, 2013 before it was read as, and lock-in period 19. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19, 2013 before it was read as, and lock-in period 20. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19, 2013 before it was read as, lock-in period and 21. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19, 2013 before it was read as, provided that the FIIs may trade such bonds / units amongst the eligible non-resident investors for Infrastructure Debt Funds within the lock-in period 22. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19, 2013 before it was read as, lock-in period and . 23. Omitted vide Notification No. FEMA. 255/2013-RB dated January 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime 23 [***] ] 34. Substituted vide Notification No. FEMA. 272/2013-RB dated March 26, 2013 Before it was read as, 25 [ (iii) Long term investors like Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds and Pension Funds registered with SEBI as eligible non-resident investors in Infrastructure Debt Funds may purchase Rupee denominated corporate bonds on repatriation basis within the limits as stipulated by the Reserve Bank and SEBI from time to time. In addition, Foreign Central Banks may purchase rupee denominated corporate bonds on repatriation basis within the limits from the date of this Notification. 35. Substituted vide Notification No. FEMA. 272/2013-RB dated March 26, 2013 Before it was read as, 10 [(iv) bonds/units issued by Infrastructure Debt Funds, subject to sock-in period and residual maturity as stipulated by the Reserve Bank and SEBI from time to time, provided that a Non-Resident Indian may trade such bonds/units amongst the eligible non-resident investors for Infrastructure Debt Funds within the lock-in period. 36. Inserted vide NOTIFICATION No. 289/2013-RB dated 4 th October, 2013 37. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easury bills to the Reserve Bank for payment of maturity proceeds 52. Renumbered as 2B vide Not.338/2015-RB - Dated 2-3-2015 , earlier it was 2A 53. Inserted vide Not.338/2015-RB - Dated 2-3-2015 54. Inserted vide Not. 353/2015-RB - Dated 6-10-2015. 55. Renumbered vide Not. 353/2015-RB - Dated 6-10-2015, before it was read as , (3) 56. Inserted vide Not. 353/2015-RB - Dated 6-10-2015. 57. Inserted vide Not. 360/2015-RB - Dated 17-12-2015 58. Inserted vide Not. 360/2015-RB - Dated 17-12-2015 59. Inserted vide Not. 360/2015-RB - Dated 17-12-2015 60. Deleted vide Not.374/2016-RB - Dated 24-10-2016 , before it was read as, listed 61. Deleted vide Not.374/2016-RB - Dated 24-10-2016 , before it was read as, (g) with effect from April 29, 2011 listed and unlisted non-convertible debentures/bonds issued by an Indian company in the infrastructure sector, where 'infrastructure' is defined in terms of the extant ECB guidelines, 29 [***]; 62. Deleted vide Not.374/2016-RB - Dated 24-10-2016 , before it was read as, (j) with effect from March 1, 2012, primary issues of non-convertible debentures/bonds provided such non-co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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