Issue of Licence for Holding Foreign Securities

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..... ign Securities Under Section 19 of the Foreign Exchange Regulation Act, 1973, persons resident in India were required to obtain holding licence for acquisition of foreign securities. However, under the Foreign Exchange Management Act, 1999, there is no obligation on residents to obtain holding licence. 2. It is, therefore, clarified that no holding licence for acquisition of foreign securitie .....

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..... prior permission of the Reserve Bank should be obtained before acquisition of foreign security. It is also clarified that prior permission of the Reserve Bank is required in terms of Regulation 21 of the said Notification for acquisition of foreign securities as qualification shares, rights shares, etc. 3. Authorised Dealers may bring the contents of this circular to the notice of their constitu .....

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