TMI BlogPurchase/ Sale of capital instruments of an Indian company by a person resident outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... purchase capital instruments of a listed Indian company on a stock exchange in India provided that: (a) The person resident outside India making the investment has already acquired control of such company in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 and continues to hold such control; (b) The amount of consideration may be paid as per the mode of payment prescribed in this Schedule or out of the dividend payable by Indian investee company in which the person resident outside India has acquired and continues to hold the control in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 provided the right to receive dividend is established and the dividend amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary for commencement of operations. 1 [ (4) An Indian company may issue, subject to compliance with the conditions prescribed by the Central Government and/or the Reserve Bank from time to time, capital instruments to a person resident outside India, if the Indian investee company is engaged in an automatic route sector, against: (a) Swap of capital instruments; or (b) Import of capital goods/ machinery/ equipment (excluding second-hand machinery); or (c) Pre-operative/ pre-incorporation expenses (including payments of rent etc.). Provided Government approval shall be obtained if the Indian investee company is engaged in a sector under Government route. The applications for approval shall be made in the manner prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days from the date of receipt of the consideration. Explanation: In case of partly paid equity shares, the period of 60 days shall be reckoned from the date of receipt of each call payment (3) Where such capital instruments are not issued within sixty days from the date of receipt of the consideration the same shall be refunded to the person concerned by outward remittance through banking channels or by credit to his NRE/ FCNR(B) accounts, as the case may be within fifteen days from the date of completion of sixty days. Provided Prior approval of the Reserve Bank shall be required for payment of interest, if any, as laid down in the Companies Act, 2013, for delay in refund of the amount so received. (4) An Indian company issuing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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