Regulation 20 - Investment by Individuals - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004

1 [20. Investment by Individuals (1) A resident individual may acquire shares of a foreign entity in part / full consideration of the professional services rendered to the foreign entity or in lieu of director s remuneration, provided the limit of acquiring such shares in terms of value shall be within the overall ceiling prescribed for the resident individuals under the Liberalized Remittance Scheme (LRS) in force at the time of acquisition. (2) A resident individual may apply to the Reserve Bank for permission to acquire shares of a foreign entity in part / full consideration of the professional services rendered to the foreign entity or in lieu of director s remuneration in case the limit prescribed under the Liberalized Remittance Scheme (LRS) exceeds. (3) Reserve Bank may, after taking into account, inter alia, the following factors, grant permission subject to such terms and conditions as are considered necessary: I. credentials and net worth of the individual and the nature of his/her profession; II. the extent of his/her forex earnings / balances in his EEFC and / or RFC account; III. financial and business track record of the foreign entity; IV. potential for forex inflow to the country; V. other likely benefits to the country.] -------------------- Notes:- Substituted vide Notification No. 277/2013-RB dated May 08, 2013, w.e.f. March 28, 2012, before it was read as, 20. .Investment by Individuals (1) A Resident individual may apply to the Reserve Bank for permission to acquire shares in a foreign entity offered as consideration for professional services rendered to the foreign entity. (2) Reserve Bank may, after taking into account, inter alia, the following factors, grant permission subject to such terms and conditions as are considered necessary: i. credentials and net worth of the individual and the nature of his profession; ii. the extent of his forex earnings/balances in his EEFC and/or RFC account; iii. financial and business track record of the foreign entity; iv. potential for forex inflow to the country; v. other likely benefits to the country.