TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Second Amendment) Regulations, 2014.X X X X Extracts X X X X X X X X Extracts X X X X ..... side India) (Second Amendment) Regulations, 2014. (ii) These shall be deemed to have come into force from the date of publication of this notification in the Official Gazette. 2. Amendment of the Regulations:- A. Amendment of Regulation 2 (i) in the existing clause (iii), at the end, the following shall be added: Any foreign institutional investor who holds a valid certificate of registration from SEBI shall be deemed to be a registered foreign portfolio investor (RFPI) till the expiry of the block of three years . (ii) after clause (viii a), the following shall be added, namely: (viiib). A Registered Foreign Portfolio Investor (RFPI) means a person registered in accordance with the provisions of Securities Exchange Board of India (SEBI) (Foreign Portfolio Investors) Regulations, 2014, as amended from time to time. Explanation: For the purpose of this regulation, the expressions, person , resident in India , non-resident shall have the same meaning as assigned to them in Section 2(u) , 2(v) and 2(w) of Foreign Exchange Management Act (FEMA), 1999 , respectively. B. Amendment of Regulation 5 : (i) in the existing sub-regulation (2), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in accordance with the provisions of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 shall be inserted. C. Amendment of Regulation 14 (i) in sub-regulation 1, in clause (ii), the words and figures Schedule 1,2,3,6 and 8 shall be substituted by the words and figures Schedule 1,2,2A,3, 6 and 8 . (ii) in sub-regulation (5), in clause (vi), the words FIIs, NRIs or QFIs shall be substituted by the words FIIs, NRIs, QFIs or RFPIs and the words and figures Schedule 1, 2, 3, 6 and 8 shall be substituted by the words and figures Schedule 1, 2, 2A, 3, 6 and 8 . D. In Annex B and Annex E to Schedule 1, for the words Foreign Institutional Investors and FIIs , wherever they appear, the words Foreign Institutional Investors/registered Foreign Portfolio Investors and FIIs/RFPIs shall be substituted respectively. E. after the existing Schedule 2, Schedule 2A shall be added. F. Amendment of Schedule 5 (i) after paragraph 1B, the following shall be added, namely: 1C Permission to registered Foreign Portfolio Investors (RFPI) for purchase of securities (1) A registered Foreign Portfolio Investor (RF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that RFPIs may offer such securities as permitted by the Reserve Bank from time to time as collateral to the recognized Stock Exchanges in India for their transactions in exchange traded derivative contracts as specified in sub-Regulation 6A of Regulation 5. (ii) in paragraph 3, after sub-paragraph (1), the following shall be added, namely: (1A) A RFPI who purchases securities under the provisions of this Schedule shall make the payment for purchase of such securities either by inward remittance through normal banking channels or out of funds held in Foreign Currency Account or Special Non-resident Rupee Account maintained by the RFPI with a designated branch of an authorised dealer in terms of paragraph 2 of Schedule 2A. (ii) in paragraph 5, after sub-paragraph (i), the following shall be added, namely: (ia) In the case of a RFPI who has sold securities in accordance with paragraph 4, the designated branch of an authorised dealer referred to in sub-paragraph (1A) 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 Spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.S.R.No.596(E) dated 06.09.2013 G.S.R.No.597(E) dated 06.09.2013 G.S.R.No.681(E) dated 11.10.2013 G.S.R.No.682(E) dated 11.10.2013 G.S.R. No.______ dated ________ G.S.R.No.683(E) dated 11.10.2013 G.S.R.No.189(E) dated 19.3.2014 SCHEDULE 2A [See Regulation 5 (2A)] Purchase/Sale of Shares / convertible debentures of an Indian Company by Registered Foreign Portfolio Investor (RFPI) under Foreign Portfolio Investment (FPI) Scheme 1. Purchase/sale of shares and/or convertible debentures A Registered Foreign Portfolio Investor (RFPI) registered in accordance with Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, as amended from time to time, may purchase shares and convertible debentures of an Indian company under FPI Scheme. 2. Maintenance of account by a RFPI for routing transactions of purchase and sale of shares / convertible debentures (i) A RFPI may open a Foreign Currency Account and/or a Special Non-Resident Rupee Account with a designated branch of an Authorized Dealer for routing the receipt and payment for transaction relating to purchase and sale of shares/convertible debentures und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in sub-paragraph (iii) of this paragraph and the Indian company is permitted to issue such shares; Provided that in case of Public Offer, the price of the shares to be issued is not less than the price at which shares are issued to residents, and in case of issue by private placement, the price is not less than the price arrived in terms of SEBI guidelines or not less than the fair price worked out as per the Discounted free Cash Flow method duly certified by a SEBI registered Merchant Banker or Chartered Accountant, as applicable. Explanation: Where a registered foreign institutional investor or a sub account, prior to commencement of Securities Exchange Board of India (SEBI) (Foreign Portfolio Investors) Regulations, 2014, holds equity shares in a company whose shares are not listed on any recognized stock exchange, and continues to hold such shares after initial public offering and listing thereof, such shares shall be subject to lock-in for the same period, if any, as is applicable to shares held by a foreign direct investor placed in similar position, under the policy of the Government of India relating to foreign direct investment for the time bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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