A P (DIR Series)
CIRCULAR NO
23/RBI, Dated: December 27, 2016
To
All Category - I Authorised Dealer Banks
Purchase
and sale of securities other than shares or convertible debentures of
an Indian company by a person resident outside India
Attention
of Authorized Dealer Category-I (AD Category-I) banks is invited to
Schedule 5 to the Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) Regulations, 2000 (the
Principal Regulations) notified vide Notification No. FEMA.20/2000-RB
dated May 3, 2000, as amended from time to time, in terms of which,
eligible investors, viz., SEBI registered Foreign Institutional
Investors (FIIs), Qualified Foreign Investors (QFIs), registered Foreign
Portfolio Investors (FPIs) and long term investors registered with
SEBI, may purchase securities indicated in Schedule 5 on repatriation
basis and subject to such terms and conditions as may be specified by
the SEBI and the Reserve Bank from time to time.
2.
With a view to providing flexibility in regard to the manner in which
non-convertible debentures/bonds issued by Indian companies can be
acquired by FPIs, it has now been decided to allow them to transact in
such instruments either directly or in any manner as per the
prevalent/approved market practice.
3. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers.
4.
The directions contained in this circular have been issued under
sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999
(42 of 1999) and are without prejudice to permissions / approvals, if
any, required under any other law.
RBI/2016-17/197
(T Rabi Sankar)
Chief General Manager
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