Schedule IV - Overseas Investment by person resident in India other than Indian entity and resident Individual - Foreign Exchange Management (Overseas Investment) Rules, 2022

Schedule IV [See rule 14] Overseas Investment by person resident in India other than Indian entity and resident Individual 1. ODI by Registered Trust or Society. Any person being a registered Trust or a registered Society engaged in the educational sector or which has set up hospitals in India may make ODI in a foreign entity with the prior approval of the Reserve Bank, subject to the following conditions, namely: (i) the foreign entity is engaged in the same sector that the Indian Trust or Society is engaged in; (ii) the Trust or the Society, as the case may be, should have been in existence for at least three financial years before the year in which such investment is being made; (iii) the trust deed in case of a Trust, and the memorandum of association or rules or bye-laws in case of a Society shall permit the proposed ODI; (iv) such investment have the approval of the trustees in case of a Trust and the governing body or council or managing or executive committee in case of a Society; (v) in case the Trust or the Society require special licence or permission either from the Ministry of Home Affairs, Central Government or from the relevant local authority, as the case may be, the special licence or permission has been obtained and submitted to the designated AD bank. 2. OI by Mutual Funds or Venture Capital Funds or Alternative Investment Funds . (1) A mutual fund or Venture Capital Fund or Alternative Investment Fund may acquire or transfer foreign securities as stipulated by SEBI from time to time in accordance with the provisions of these rules and subject to such other terms and conditions as may be laid down by the Reserve Bank and the SEBI under applicable laws from time to time: Provided that the aggregate limit for such investment shall be decided by the Reserve Bank in consultation with the Central Government: Provided further that the individual limits for such investments shall be as per the instructions issued by the SEBI from time to time. (2) Every transaction relating to the purchase and sale of foreign security by the funds referred to in subparagraph (1) shall be routed through the designated AD bank in India: (3) Notwithstanding anything contained in these rules, any investment under these rules by mutual funds, Venture Capital Funds and Alternative Investment Funds shall be treated as OPI. Explanation. For the purposes of this paragraph, Alternative Investment Fund means any fund registered as such with the SEBI. 3. Opening of Demat Accounts by clearing corporations of stock exchanges and clearing members. Any person, being a SEBI approved clearing corporation of a stock exchange and its clearing members, may acquire, hold and transfer foreign securities, offered as collateral by foreign portfolio investors and, subject to the guidelines issued by the SEBI from time to time, (i) open and maintain Demat Account with foreign depositories; (ii) remit the proceeds arising due to such action, if any; and (iii) liquidate such foreign securities and repatriate the proceeds thereof to India. 4. Acquisition and transfer of foreign securities by domestic depository. A domestic depository may acquire, hold and transfer foreign securities of a foreign entity, being the underlying security to issue Indian Depository Receipts as may be authorised by such foreign entity or its overseas custodian bank and the person investing in Indian Depository Receipts may either sell or continue to hold foreign securities in accordance with the conditions provided in these rules and the Foreign Exchange Management (Overseas Investment) Regulations, 2022 upon conversion of such depository receipts. 5. Acquisition and transfer of foreign securities by AD bank. An AD bank including its overseas branch may acquire or transfer foreign securities in accordance with the terms of the host country or host jurisdiction, as the case may be, in the normal course of its banking business.