Regulation 19 - Prior Permission of the Reserve Bank for Direct Investment by a Proprietary Concern in India - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004

Part II Investments abroad by Individuals in India 2 [ 19. Prior Permission of the Reserve Bank for a Proprietary Concern in India to accept shares A proprietary concern in India may apply to the Reserve Bank through the authorised dealer in Part I of the Form ODI , as prescribed by the Reserve Bank from time to time, for permission to accept shares of a company outside India in lieu of fees due to it for professional services rendered to the said company. Provided that (a) the value of the shares accepted from each company outside India shall not exceed fifty per cent of the fees receivable by the Indian concern from that company and (b) the Indian concern s shareholding in any one company outside India by virtue of shares accepted as aforesaid shall not exceed ten per cent of the paid-up capital of the company outside India, whose shares are accepted.] **************************** Notes : 1. Has been substituted vide Notification No. 180/2008 dated 5/9/2008 before it was read as, 19. Prior Permission of the Reserve Bank for Direct Investment by a Proprietary Concern in India A proprietary concern in India may apply to the Reserve Bank in Form ODB for permission to accept shares of a company outside India in lieu of fees due to it for professional services rendered to the said company. Provided that: - (a) the value of the shares accepted from each company outside India shall not exceed fifty per cent of the fees receivable by the Indian concern from that company; and, (b) the Indian concern's shareholding in any one company outside India by virtue of shares accepted as aforesaid shall not exceed ten per cent of the paid-up capital of the company outside India, whose shares are accepted. 2. Substituted vide NOTIFICATION No. FEMA 314/RB-2014, dated 3rd July, 2014 , before it was read as, 1 [19. Prior permission of the Reserve Bank for a Proprietary Concern in India to accept shares A proprietary concern in India may apply to the Reserve Bank through the authorised dealer in Part I of the Form ODI for permission to accept shares of a company outside India in lieu of fees due to it for professional services rendered to the said company. Provided that:- (a) the value of the shares accepted from each company outside India shall not exceed fifty per cent of the fees receivable by the Indian concern from that company; and, (b) the Indian concern's shareholding in any one company outside India by virtue of shares accepted as aforesaid shall not exceed ten per cent of the paid-up capital of the company outside India, whose shares are accepted.]