TMI BlogPurchase and sale of securities other than capital instruments by a person resident outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... ities/ treasury bills; (b) non-convertible debentures/ bonds issued by an Indian company; (c) commercial papers issued by an Indian company; (d) units of domestic mutual funds; (e) Security Receipts (SRs) issued by Asset Reconstruction Companies up to 100 percent of each tranche, subject to directions/ guidelines of the Reserve Bank; (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) provided that the investment by all eligible investors in Perpetual Debt instruments (Tier I) shall not exceed an aggregate ceiling of 49 percent of each issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in exchange traded derivative contracts as specified in sub-Regulation 5 of Regulation 5. B. Permission to Non-resident Indians (NRIs) or Overseas Citizens of India (OCIs) Repatriation basis (1) A Non-resident Indian (NRI) or an Overseas Citizen of India (OCI) may, without limit, purchase the following instruments on repatriation basis, (a) Government dated securities (other than bearer securities) or treasury bills or units of domestic mutual funds; (b) Bonds issued by a Public Sector Undertaking (PSU) in India; (c) Shares in Public Sector Enterprises being disinvested by the Central Government, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids; (d) Bonds/ uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or an OCI may, without limit, purchase on non-repatriation basis, dated Government securities (other than bearer securities), treasury bills, units of domestic mutual funds, units of money Market Mutual Funds, or National Plan/ Savings Certificates. (2) An NRI or an OCI may, without limit, purchase on non-repatriation basis, listed non-convertible/ redeemable preference shares or debentures issued in terms of Regulation 9 of these Regulations. (3) An NRI or an OCI may, without limit, on non-repatriation basis subscribe to the chit funds authorised by the Registrar of Chits or an officer authorised by the State Government in this behalf. D. Permission to Foreign Central Banks or a Multilateral Development Bank for purchase of Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c 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. The term Infrastructure Sector has the same meaning as given in the Harmonised Master List of Infrastructure sub-sectors approved by Government of India vide Notification F. No. 13/06/2009-INF dated March 27, 2012 as amended/ updated; (f) non-convertible debentures/bonds issued by Non-Banking Finance Companies categorized as Infrastructure Finance Companies (IFCs) by the Reserve Bank; (g) security Receipts (SRs) issued by Asset Reconstruction Companies up to 100 percent of each tranche, subject to directions/ guidelines of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instruments by FPIs shall be paid out of inward remittance from abroad through banking channels or out of funds held in a foreign currency account and/ or Special Non-Resident Rupee (SNRR) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016. The foreign currency account and SNRR account shall be used only and exclusively for transactions under this Schedule. (2) The amount of consideration for purchase of instruments by NRIs or OCIs on repatriation basis shall be paid out of inward remittances from abroad through banking channels or out of funds held in NRE/ FCNR(B) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016. (3) The amount of conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Credited to the NRO account person concerned where the instruments were held on non-repatriation basis (b) Credited to the NRO account person concerned where the payment for the purchase of the instruments sold was made out of funds held in NRO account, or (c) Remitted abroad or at the NRI/ OCI investor's option, credited to his NRE/ FCNR(B)/ NRO account, where the instruments were purchased on repatriation basis. (3) In all other cases, the sale/ maturity proceeds (net of taxes) may be remitted abroad or credited to an account opened with the prior permission of the Reserve Bank. ********* Notes 1. Inserted vide NOTIFICATION No. FEMA 20 (R) (4) /2019-RB dated 18-04-2019 - - statute, statu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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