Stockinvest Scheme ‑ Introduction of stockinvest in primary capital market for NRIs/OCBs - Companies Law - Circular : No. 27,

Circular : No. 27, dated 23 ‑ 10 ‑ 1992. Issued by the Reserve Bank of India, Exchange Control Department, Central Office, AD (GP Series). Subject:- Stockinvest Scheme ‑ Introduction of stockinvest in primary capital market for NRIs/OCBs Attention of authorised dealers is invited to Circular No. DBOD.BC. 76/24.47.001.91/92, dated 1‑2‑1992 issued by our Department of Banking Operations and Development (DBOD) in terms of which STOCKINVEST has been introduced as payment instrument for application money to the issue of capital by Indian companies. 2. With a view to enabling non‑residents of Indian nationality/origin (NRIs) and overseas corporate bodies predominantly owned by such persons (OCBs) to avail of the STOCKINVEST facility to apply for shares/debentures with repatriation benefits to be issued to them by Indian companies under public issues with Reserve Bank s prior permission; it has since been decided that authorised dealers may issue STOCKINVEST to NRIs/OCBs subject to following conditions : (i) The STOCKINVEST to be issued to NRIs should be of Light Green colour; (ii) It should be superscribed with the notation that the STOCKINVEST has been issued against lien on NRE/FCNR accounts of the investor and the same will be paid when presented out of repatriable funds held in NRE/FCNR account. (iii) All other guidelines issued by DBOD shall be followed. 3. Authorised dealers may bring the contents of this circular to the notice of their NRI constituents. 4. The directions contained in this circular have been issued under section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non‑observance thereof is subject to the penalties prescribed under the Act.