Regulation 18 - Prohibition on issue of foreign security by a person resident in India - Foreign Exchange Management (Transfer Or Issue of Any Foreign Security) Regulations, 2000

Has been superseded vide Notification No. 120/2004 dated 7/7/2004 18. Prohibition on issue of foreign security by a person resident in India. (1) Save as otherwise provided in the Act or in sub- regulation (2), no person resident in India shall issue or transfer a foreign security. 1 ( 2) A person resident in India, being an Indian Company or a Body Corporate created by an Act of Parliament, (i) may issue FCCBs not exceeding US$50 million, to a person resident outside India in accordance with and subject to the conditions stipulated in Schedule II; (ii) where the issue exceeds US $50 million but does not exceed US $100 million, may apply to the Reserve Bank in Form ECB for permission to issue FCCBs; (iii) where the issue exceeds US $100 million, may apply to the Government of India, Ministry of Finance, (Department of Economic Affairs) for approval. (3) 2 The company/ body corporate referred to in clause (iii) of sub-regulation (2), issuing the FCCBs shall, within 30 days from the date of issue, furnish a report to the Reserve Bank giving the details and documents as under: (a) A copy of Government's approval for issue of FCCBs (b) Total amount for which FCCBs have been issued, (c) Names of the investors resident outside India and number of FCCBs issued to each of them. (d) The amount repatriated to India through normal banking channels and/or the amount received by debit to NRE/FCNR accounts in India of the investors (duly supported by bank certificate). ******************** Note : 1. Has been substituted vide Notification No. 055/2002 dated 7/3/2002 2. For the words ' The company/ body corporate referred to in sub-regulation (2)', the words ' The company/ body corporate referred to in clause (iii) of sub-regulation (2)' has been substituted vide Notification No. Supra.