Regulation 19 - Permission for purchase/acquisition of foreign securities in certain cases - Foreign Exchange Management (Transfer Or Issue of Any Foreign Security) Regulations, 2000

Has been superseded vide Notification No. 120/2004 dated 7/7/2004 19. Permission for purchase/acquisition of foreign securities in certain cases (1) A person resident in India being an individual may acquire foreign securities:- (i) by way of gift from a person resident outside India; or (ii) issued by a company incorporated outside India under Cashless Employees Stock Option Scheme:- Provided it does not involve any remittance from India, or (iii) by way of inheritance from a person whether resident in or outside India. (2) A person resident in India, being an individual, who is an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company in which foreign equity holding is not less than 51 per cent, may purchase the equity shares offered by the said foreign company:- Provided that - (i) the shares are offered at a concessional price; and (ii) the consideration for purchase does not exceed US$ 20,000 or its equivalent, in any one calendar year. (3) An authorised dealer may allow the remittance by the person eligible to purchase the shares in terms of sub-regulation (2):- Provided that the conditions specified in that sub-regulation are fulfilled.