TMI BlogOverseas Investment by Person Resident in India(PRII) [Section 6(4)]X X X X Extracts X X X X X X X X Extracts X X X X ..... In general terms of this general permission, a person resident in India is allowed to - hold; own; transfer; invest in; foreign currency [defined in section 2(m) ] foreign security [defined in section 2(o) ] immovable property If such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.. Reserve Bank has clarified that the following transaction are covered under section 6(4) of FEMA Act,1999 [ A.P. (DIR Series) Circular No. 90, dated 09-01-2014 ] Foreign currency accounts opened and maint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y such entity as a rights issue; or may be granted bonus shares subject to the terms and conditions under these rules. The person resident in India acquiring the rights issue may renounce to in favour of a person resident in India (PRII) or a person resident outside India (PROI). Prohibition on investment outside India [As per Rule 8 of FEM (Overseas Investment) Rules, 2022 ] No person resident in India (PRII) shall make or transfer any investment or financial commitment outside India. Overseas Investment by Person Resident in India [ Rule 9 of FEM (Overseas Investment) Rules, 2022 ] Any investment made outside India by a person residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made to it through the designated AD bank and for sufficient reasons, permit a person resident in India to make or transfer any investment or financial commitment outside India subject to such conditions as may be laid down by it. Exception:- Overseas Investment by a person resident in India (PRII) shall not be made in a foreign entity located in a country or jurisdiction as may be decided by the Central Government from time to time. Consultation With central Government :- The Reserve Bank, if it considers necessary may, in consultation with the Central Government, Stipulate the ceiling for the aggregate outflows during a financial year on account of financial commitment or Overseas Portfol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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