TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia hereby makes the following amendments in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 ( Notification No. FEMA. 20/2000-RB dated 3rd May 2000 ) namely:- 1. Short Title Commencement (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2016. (ii) They shall come into force from the date of their publication in the Official Gazette. 2. Amendment of the Regulation In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, ( Notification No. FEMA 20/2000-RB dated 3rd May 2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b. The paid-up value of shares of an Indian company purchased by any individual NRI should not exceed five percent of the paid-up value of shares issued by the company concerned; c. the paid-up value of convertible preference shares or convertible debentures of any series purchased by any individual NRI on repatriation basis should not exceed five percent of the paid-up value of convertible preference shares or convertible debentures of that series issued by the company concerned; d. the paid-up value of warrants of any series purchased by any individual NRI on repatriation basis should not exceed five percent of the paid-up value of warrants of that series issued by the company concerned; e. the aggregate paid-up value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntures/ units, etc. An NRI may open a designated NRE account (opened and maintained by Authorised Dealer bank in terms of the Foreign Exchange Management (Deposit) Regulations, 2000 ) for the purpose of investment under this scheme with a designated branch of an Authorized Dealer bank referred to in paragraph 1, for routing the receipt and payment for transactions relating to sale and purchase of shares /convertible preference shares/ convertible debentures/ warrants/ units under this Schedule. The designated account will be called an NRE (PIS) Account. The designated branch shall ensure that sale proceeds of securities or units which have been acquired by modes other than Portfolio Investment Scheme such as underlying shares acqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting NRO (PIS) accounts may be re-designated as NRO account. D. Schedule 4 shall be substituted, namely Schedule-4 [See Regulation 5(3) (ii)] Acquisition of Securities or units by a Non-Resident Indian (NRI), on Non-Repatriation basis Permission to purchase 1. A Non-resident Indian (NRI), including a company, a trust and a partnership 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 acquir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , will not amount to real estate business . Investment in units of Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) regulations 2014 shall also be excluded from the definition of real estate business . Method of payment for purchase 3. The consideration for investment under this Schedule shall be paid by way of inward 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 consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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