9911796707
TMI BlogForeign Exchange Management (Debt Instruments) Regulations, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... :- a) "Act" means the Foreign Exchange Management Act, 1999 (42 of 1999); b) "asset reconstruction company" means a company registered with the Reserve Bank under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); c) "authorised dealer" includes a person authorised under sub-section (1) of section 10 of the Act; d) "debt instruments" means the instruments listed under Schedule 1 of the regulations; e) "foreign central bank" means an institution or organisation or body corporate established in a country outside India and entrusted with the responsibility of carrying out central bank functions under the law for the time being in force in that country; f) "FCNR (B) account" means a Foreign Currency Non-Resident (Bank) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016; g) "FPI" or "Foreign Portfolio Investor" means a person registered in accordance with the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014; h) "Indian company" means a company incorporated in India; i) "Indian entity" sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Reserve Bank may, on an application made to it and for sufficient reasons, permit a person resident outside India to make any investment in India subject to such conditions as may be considered necessary. 4. Restriction on receiving investment.- Save as otherwise provided in the Act or rules or regulations made thereunder, an Indian entity or a mutual fund, or a venture capital fund or a firm or an association of persons or a proprietary concern shall not receive any investment in India from a person resident outside India or record such investment in its books : Provided that the Reserve Bank may, on an application made to it and for sufficient reasons, permit an Indian entity or a mutual fund, or a venture capital fund or a Firm or an Association of Persons or a proprietary concern to receive any investment in India from a person resident outside India or to record such investment subject to such conditions as may be considered necessary. 5. Permission for making investment by a person resident outside India.- Unless otherwise specified in these regulations or the relevant Schedules, any investment made by a person resident outside India shall be subject to the entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable taxes) to the seller of such instrument resident outside India - Provided - (i) the instrument was held by the seller on repatriation basis; and (ii) Reserve Bank's approval has been obtained in other cases for sale of the instrument and remittance of the sale proceeds thereof; (3) An authorised dealer may allow remittances - both inward and outward - related for permitted derivatives transactions. SCHEDULE 1 Purchase and sale of debt instruments by a person resident outside India 1. Permission to persons resident outside India A. Permission to Foreign Portfolio Investors (FPIs) An FPI may purchase the following debt instruments on repatriation basis subject to the terms and conditions specified by the Securities and Exchange Board of India and the Reserve Bank: (a) dated Government securities/ treasury bills; (b) non-convertible debentures/ bonds issued by an Indian company; (c) commercial papers issued by an Indian company; (d) units of domestic mutual funds or Exchange-Traded Funds (ETFs) which invest less than or equal to 50 percent in equity; (e) Security Receipts (SRs) issued by Asset Reconstruction Companies; (f) debt instruments issued by banks, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n OCI may, without limit, purchase on non-repatriation basis, dated Government securities (other than bearer securities), treasury bills, units of domestic mutual funds or Exchange-Traded Funds (ETFs) which invest less than or equal to 50 percent in equity, or National Plan/ Savings Certificates. (2) An NRI or an OCI may, without limit, purchase on non-repatriation basis, listed non-convertible/ redeemable preference shares or debentures issued in terms of Regulation 6 of these Regulations. (3) An NRI or an OCI may, without limit, on non-repatriation basis subscribe to the chit funds authorised by the Registrar of Chits or an officer authorised by the State Government in this behalf. D. Permission to Foreign Central Banks or a Multilateral Development Bank for purchase of Government Securities (1) Foreign Central Banks, Multilateral Development Banks or any other entity permitted by the Reserve Bank, may purchase or sell dated Government Securities/treasury bills, as per terms and conditions specified by the Reserve Bank. 2. Mode of Payment (1) The amount of consideration for purchase of instruments by FPIs shall be paid out of inward remittance from abroad through banking ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
