9911796707
TMI BlogPurchase and sale of shares/ convertible debentures by a Non-resident Indian (NRI) on non-repatriation basis - [See Regulation 5 (3) (ii)]X X X X Extracts X X X X X X X X Extracts X X X X ..... ia and owned and controlled by non-resident Indians, may acquire and hold, on non-repatriation basis, equity shares, convertible preference shares, convertible debenture, warrants or units, which will be deemed to be domestic investment at par with the investment made by residents. Without loss of generality, it is stated that a. An NRI may acquire, on non-repatriation basis, any security issued by a company without any limit either on the stock exchange or outside it. b. An NRI may invest, on non-repartition basis, in units issued by an investment vehicle without any limit, either on the stock exchange or outside it. c. An NRI may contribute, on non-repatriation basis, to the capital of a partnership firm, a proprietary firm or a Limited L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FCNR/NRO account maintained with a bank in India: Sale/ Maturity proceeds 4. The sale/maturity proceeds (net of applicable taxes) of the securities or units acquired under this Schedule shall be credited only to NRO account irrespective of the type of account from which the considerations for acquisition were paid. 5. The amount invested under this Scheme and the capital appreciation thereon shall not be allowed to be repatriated abroad.] ************* Note : 1. Substituted vide Notification No. 179/2008 dated 22/08/2008 , before substitution as inserted vide Notification No. 094/2003 dated 18/6/2003 , it was read as, Provided that the person to whom the shares are being transferred, has obtained prior permission of Central Government to ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in Information Technology sector or in the mining sector, if the existing joint venture or technology transfer/trade mark agreement of the person to whom the shares are to be transferred are also in the Information Technology sector or in the mining sector for same area/mineral. (C) investment to be made by Venture Capital: Funds registered with SEBI; investments by multinational financial institutions or where in the existing joint-venture investment by either of the parties is less than 3%; or where the existing joint venture/collaboration is defunct or sick. 3. Substituted vide Notification No. FEMA. 308/2014-RB, dated June 30, 2014 , before it was read as, shares or convertible debentures 4. Substituted vide Notification No. FEMA. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -resident Indian (NRI) [***] on non-repatriation basis 1. Prohibition on purchase of 4 [shares or convertible debentures or warrants ] of certain companies No purchase of 13 [shares or convertible debentures or warrants] of an Indian company shall be made under this Scheme if the company concerned is a Chit Fund or a Nidhi company or is engaged in agricultural/plantation activities or real estate business or construction of farm houses or dealing in Transfer of Development Rights. Explanation : For the purpose of this paragraph, real estate business shall not include development of township, construction of residential/ commercial premises, roads, bridges, etc. 2. Permission to purchase and/or sell 5 [shares or convertible debentures or war ..... X X X X Extracts X X X X X X X X Extracts X X X X
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