SCHEDULE 03 - Purchase/sale of shares and/or convertible debentures by an 1NRI on a Stock Exchange In India on repatriation and/or non-repatriation basis under Portfolio Investment Scheme - [See Regulation 5 (3) (i)] - Foreign Exchange Management (Transfer or Issue Of Security By A Person Resident Outside India) Regulations, 2000

These rules have been superseded vide New Regulations New Regulations of 2017 12 [SCHEDULE 3 [See Regulation 5(3) (i)] Acquisition of Securities or Units by a Non-Resident Indian (NRI) on a Stock Exchange in India on Repatriation basis under the Portfolio Investment Scheme 1. A Non-resident Indian (NRI) may purchase or sell shares, convertible preference shares, convertible debentures and warrants of an Indian company or units of an investment vehicle, on repatriation basis, on a recognised stock exchange, subject to the following conditions: a. NRIs may purchase and sell shares /convertible preference shares/ convertible debentures /warrants and units under the Portfolio Investment Scheme through a branch designated by an Authorised Dealer for the purpose; 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 shares of any company purchased by all NRIs on repatriation basis should not exceed ten percent of the paid-up value of shares of the company and the aggregate paid-up value of each series of convertible preference shares or convertible debentures or warrants purchased by all NRIs should not exceed ten percent of the paid-up value of that series of convertible preference shares or convertible debentures or warrants; Provided that the aggregate ceiling of ten per cent referred to in this clause may be raised to twenty-four per cent if a special resolution to that effect is passed by the General Body of the Indian company concerned; f. The NRI investor should take delivery of the shares/convertible preference shares/ convertible debentures /warrants and units purchased and give delivery of the same when sold; g. The investment shall be subject to the provisions of the FDI policy and Schedule 1 of these Regulations in respect of sectoral caps wherever applicable. Explanation: Investment Vehicles and Units and shall have the same meaning as defined in sub-regulation (ii g) and (xi A) of Regulation 2 of these Regulations. 2. Report to Reserve Bank The reporting of transactions under this Schedule shall be made by the designated branch of the Authorised Dealer referred to in paragraph 1, in a manner specified by Reserve Bank of India. 3. Maintenance of accounts by an NRI for routing transactions for purchase and sale of shares / convertible debentures/ 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 acquired on conversion of ADRs / GDRs, shares / convertible preference shares / convertible debentures /warrants acquired under FDI Scheme or purchased outside India from other NRIs or acquired under private arrangement from residents/non-residents or purchased while resident in India, do not get credited in the NRE (PIS) Account and vice-versa. 4. Permitted Credits/ Debits in NRE(PIS)account Credits a. Inward remittances in foreign exchange though normal banking channels; b. Transfer from the NRI s other NRE accounts or FCNR (B) accounts maintained with Authorised Dealer in India; c. Net sale proceeds (after payment of applicable taxes) of shares / convertible preference shares /convertible debentures /warrants/ units acquired on repatriation basis under the Scheme and sold on stock exchange through registered broker; and d. Dividend or income earned on investment made on repatriation basis under the Scheme Debits a. Outward remittances of dividend or income earned; b. Amounts paid on account of purchase of shares /convertible preference shares/ convertible debentures / warrants/ units on repatriation basis on stock exchanges through registered broker under the Scheme; and c. Any charges on account of sale / purchase of securities or units under the Scheme. d. Remittances outside India or transfer to NRE / FCNR (B) accounts of the account holder of the NRI or any other person eligible to maintain such account. 5. Saving The existing NRO (PIS) accounts may be re-designated as NRO account.] ***************************** Note : 1. For the words 'NRI/OCB', the word 'NRI' has been substituted vide Notification no. 046/2001 dated 29/11/2001 2. The words 'or an Overseas Corporate Body (OCB)' has been omitted vide Notification no. Supra 3. Substituted vide Notification no. 94/2003 dated 18/6/2003 , before it was read as, the NRI/OCB designates a branch of an authorised dealer for routing his transactions relating to purchase and sale of shares/ convertible debentures under this Scheme, and routes all such transactions only through the branch so designated; For the words 'his/its', the word 'his' has been substituted vide Notification no. 046/2001 dated 29/11/2001 4. Sub-paragraph (vii) has been omitted vide Notification no. 046/2001 dated 29/11/2001 5. Has been substituted vide Notification no. 046/2001 dated 29/11/2001 6. Substituted vide Notification no. 94/2003 dated 18/6/2003 , before it was read, as The net sale/maturity proceeds (after payment of taxes) of shares and/or debentures of an Indian company purchased by NRI or OCB under this Scheme, may be allowed by the designated branch of an authorised dealer referred to in paragraph 1, a) to be credited to NRSR account of the NRI or OCB investor where the payment for purchase of shares and/or debentures sold was made out of funds held in NRSR account, or b) at the NRI or OCB investor's option, to be credited to his/its NRO or NRSR account, where the shares and/or debentures were purchased on non-repatriation basis, or c) at the NRI or OCB investor's option, to be remitted abroad or credited to his/its NRE/ FCNR/ NRO/NRSR account, where shares and/or debentures were purchased on repatriation basis. 7. Deleted vide NOTIFICATION No. FEMA. 261/2013-RBI dated February 27, 2013 , before it was read as, and duly approved by the Reserve Bank of India . 8. Deleted vide NOTIFICATION No. FEMA. 261/2013-RBI dated February 27, 2013 , before it was read as, vi) payment for purchase of shares and/or debentures is made by inward remittance in foreign exchange through normal banking channels or out of funds held in NRE/FCNR account maintained in India if the shares are purchased on repatriation basis and by inward remittance or out of funds held in NRE/FCNR/NRO/NRNR/NRSR account of the 1 NRI concerned maintained in India where the shares/debentures are purchased on non-repatriation basis; 9. Substituted vide NOTIFICATION No. FEMA. 261/2013-RBI dated February 27, 2013 , before it was read as, 2. Report to Reserve Bank 5 The link office of the designated branch of an authorised dealer referred to in paragraph 1 shall furnish to the Chief General Manager, RBI, ECD, Central Office, Mumbai, a report on daily basis on PIS transactions undertaken by it, such report to be furnished on line or on floppy or in hard copy in a format supplied by Reserve Bank. 10. Substituted vide NOTIFICATION No. FEMA. 261/2013-RBI dated February 27, 2013 , before it was read as, 6 3. Remittance/credit of sale/maturity proceeds of shares and/or debentures. The net sale/maturity proceeds (after payment of taxes) of shares and/or debentures of an Indian company purchased by NRI [***] under this scheme, may be allowed by the designated branch of an authorised dealer referred to in paragraph 1, a. to be credited to NRO account of the NRI/[***] investor where the payment for purchase of shares and/or debentures sold was made out of funds held in NRO account or where the shares and/or debentures were purchased on non-repatriation basis, or b. at the NRI o[***] investor's option, to be remitted abroad or credited to his/its NRE/FCNR/NRO account of the NRI, where shares and/or debentures were purchased on repatriation basis. 11. Inserted vide NOTIFICATION No. FEMA. 261/2013-RBI dated February 27, 2013 . 12. Substituted vide Not. 361/2016-RB - Dated 15-2-2016 , before it was read as, [See Regulation 5 (3) (i)] Purchase/sale of shares and/or convertible debentures by an 1 NRI on a Stock Exchange In India on repatriation and/or non-repatriation basis under Portfolio Investment Scheme 1. A Non-resident Indian (NRI) 2 (***) may purchase/sell shares and/or convertible debentures of an Indian company, through a registered broker on a recognised stock exchange, subject to the following conditions : 3 (i) NRIs may purchase and sell shares/convertible debentures under the Portfolio Investment Scheme through a branch designated by an Authorised Dealer for the purpose 7 [***]. (ii) the paid-up value of shares of an Indian company, purchased by each 1 NRI both on repatriation and on non-repatriation basis, does not exceed 5 percent of the paid-up value of shares issued by the company concerned; (iii) the paid-up value of each series of convertible debentures purchased by each 1 NRI both on repatriation and non-repatriation basis does not exceed 5 percent of the paid-up value of each series of convertible debentures issued by the company concerned; (iv) the aggregate paid-up value of shares of any company purchased by all NRIs does not exceed 10 percent of the paid up capital of the company and in the case of purchase of convertible debentures the aggregate paid-up value of each series of debentures purchased by all 1 NRIs does not exceed 10 percent of the paid-up value of each series of convertible debentures; Provided that the aggregate ceiling of 10 per cent referred to in this clause may be raised to 24 per cent if a special resolution to that effect is passed by the General Body of the Indian company concerned; (v) the 1 NRI investor takes delivery of the shares purchased and gives delivery of shares sold; (vi) 8 [***] 4 (vii) Omitted 9 [ 2. Report to Reserve Bank The link office of the designated branch of an authorized dealer referred to in paragraph 1 shall obtain a Unique Code number from the Reserve Bank. The said link office of the designated branch of an authorized dealer shall furnish to the Chief General Manager-in-Charge, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai, a report on daily basis on PIS transactions undertaken on behalf of NRIs for their entire bank under the Online Report Filing System (ORFS). The said link office shall be responsible to ensure that the data submitted to the Reserve Bank is reconciled by periodically taking a NRI holding report for its bank. ] 10 [ 3. Maintenance of accounts by an NRI for routing transactions for purchase and sale of shares/convertible debentures An NRI may open a separate sub-account of NRE/NRO account (opened and maintained by Authorised Dealer bank in terms of the Foreign Exchange Management .(Deposit) Regulations, 2000) with a designated branch of an Authorized Dealer bank referred to in paragraph 1, for routing the receipt and payment for transactions relating to purchase and sale of shares /convertible debentures under this Scheme. NRE(PIS) account shall be opened for investment made on repatriation basis and NRO(PIS) account shall be opened for investment made on non-repatriation basis under the Scheme. The designated branch of an Authorised Dealer bank shall ensure that sale proceeds of shares / convertible debentures which have been acquired by modes other than Portfolio Investment Scheme such as underlying shares acquired on conversion of ADRs/GDRs, shares/ convertible debentures acquired under FDI Scheme, shares/ convertible debentures purchased outside India from other NRIs, shares/ convertible debentures acquired under debentures purchased while resident in India, do not get credited/debited in the NRE(PIS)/NRO (PIS) account opened exclusively for routing transactions under this Scheme. ] 11 [ 4. Permitted Credits/ Debits (A) Permitted Credits/ Debits in NRE (PIS) account Credits (i) Inward remittances in foreign exchange though normal banking channels; (ii) Transfer from the NRI's other NRE accounts or FCNR (B) accounts maintained with Authorised Dealer in India ; (iii) Net sale proceeds (after payment of applicable taxes) of shares / convertible debentures acquired on repatriation basis under the Scheme and sold on stock exchange through registered broker; and (iv) dividend or income earned on investment made on repatriation basis under the Scheme Debits (i) Outward remittances of dividend or income earned; (ii) Amounts paid on account of purchase of shares and convertible debentures on repatriation basis on stock exchanges through registered broker under the Scheme; and (iii) Any charges on account of sale/ purchase of shares or convertible debentures under the Scheme. (B) Permitted Credits/ Debits in NRO(PIS) account Credits (i) Inward remittances in foreign exchange though normal banking channels; (ii) Transfer from the NRI's other NRE accounts or FCNR (B) accounts or NRO accounts maintained with Authorised Dealer in India ; (iii) Net sale proceeds ( after payment of applicable taxes) of shares and convertible debentures acquired on repatriation basis (at the option of the NRI) and non-repatriation basis under the Scheme and sold on stock exchange through registered broker; and (iv) dividend or income earned on investment made on repatriation basis under the Scheme Debits (i) Outward remittances of dividend or income earned (ii) Amounts paid on account of purchase of shares and convertible debentures on non- repatriation basis on stock exchanges through registered broker under PIS. (iii) Any charges on account of sale/ purchase of shares or convertible debentures under PIS. ]