TMI BlogForeign Exchange Management (Debt Instruments) Regulations, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. (2) They shall come into force from the date of their publication in the Official Gazette. 2. Definitions : - In these Regulations, unless the context otherwise requires,:- a) Act means the Foreign Exchange Management Act, 1999 (42 of 1999); b) asset reconstruction company means a company registered with the Reserve Bank under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); c) authorised dealer includes a person authorised under sub-section (1) of section 10 of the Act; d) debt instruments means the instruments listed under Schedule 1 of the regulations; e) foreign central bank means an institution or organisation or body corporate established in a country outside India and entrusted with the responsibility of carrying out central bank functions under the law for the time being in force in that country; f) FCNR (B) account means a Foreign Currency Non-Resident (Bank) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016; g) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide India . - Save as otherwise provided in the Act, or rules or regulations made thereunder, no person resident outside India shall make any investment in India. Provided that an investment made in accordance with the Act or the rules or the regulations framed thereunder and held on the date of commencement of these Regulations, shall be deemed to have been made under these Regulations and shall accordingly be governed by these Regulations: Provided further that the Reserve Bank may, on an application made to it and for sufficient reasons, permit a person resident outside India to make any investment in India subject to such conditions as may be considered necessary. 4. Restriction on receiving investment .- Save as otherwise provided in the Act or rules or regulations made thereunder, an Indian entity or a mutual fund, or a venture capital fund or a firm or an association of persons or a proprietary concern shall not receive any investment in India from a person resident outside India or record such investment in its books : Provided that the Reserve Bank may, on an application made to it and for sufficient reasons, per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment by a person resident outside India is prohibited. 7. Taxes and Remittance of sale proceeds. 7.1. Taxes All transaction under these regulations shall be undertaken through banking channels in India and subject to payment of applicable taxes and other duties/ levies in India. 7.2. Remittance of sale proceeds (1) No remittance of sale proceeds of a debt instrument held by a person resident outside India shall be made otherwise than in accordance with these Regulations and the conditions specified in the relevant Schedule. (2) An authorised dealer may allow the remittance of sale proceeds of a debt instrument (net of applicable taxes) to the seller of such instrument resident outside India - Provided - (i) the instrument was held by the seller on repatriation basis; and (ii) Reserve Bank's approval has been obtained in other cases for sale of the instrument and remittance of the sale proceeds thereof; (3) An authorised dealer may allow remittances both inward and outward related for permitted derivatives transactions. SCHEDULE 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Public Sector Undertaking (PSU) in India; c. Bonds issued by Infrastructure Debt Funds; d. Listed non-convertible/ redeemable preference shares or debentures issued in terms of Regulation 6 of these Regulations; (2) An NRI or an OCI may purchase on repatriation basis debt instruments issued by banks, eligible for inclusion in regulatory capital. (3) An NRI may subscribe to National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such person is eligible to invest as per the provisions of the PFRDA Act. The annuity/ accumulated saving will be repatriable: Provided that NRI/ OCIs may offer such instruments 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 2 of regulation 5. C. Permission to Non-resident Indians (NRIs) or Overseas Citizens of India (OCIs) Non-Repatriation basis (1) An NRI or an OCI may, without limit, purchase on non-repatriation basis, dated Government securities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward remittances from abroad through banking channels or out of funds held in an account opened with the specific approval of the RBI. (5) The amount of consideration for purchase of instruments by other non-resident investors shall be paid out of inward remittances from abroad through banking channels. 3. Permission for Sale of instruments A person resident outside India who has purchased instruments in accordance with this Schedule may sell/ redeem the instruments subject to such terms and conditions as may be specified by the Reserve Bank and the Securities Exchange Board of India. 4. Remittance/ credit of sale/ maturity proceeds (1) The sale/ maturity proceeds (net of taxes) of instruments held by Foreign Portfolio Investors (FPIs) may be remitted outside India or may be credited to the foreign currency account or SNRR account of the FPI. (2) The net sale/ maturity proceeds (net of taxes) of instruments held by NRIs or OCIs, may be: a. Credited to the NRO account person concerned where the instruments were held on non-repatriation basis b. Credited to the NRO account pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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