E-Paper
Export of Shares/Securities
10A.8 In terms of Section 19(1)(a) of FERA 1973, export of any security (which includes shares, bonds, debentures, etc.) to anyplace outside India requires permission of Reserve Bank.
10A.8 In terms of Section 19(1)(a) of FERA 1973, export of any security (which includes shares, bonds, debentures, etc.) to anyplace outside India requires permission of Reserve Bank.
NOTES: A. Unit Trust of India has been granted general permission by Reserve Bank to export certificates covering units purchased by non-resident investors from out of foreign exchange remittances to India or from their non-resident accounts in India.
B. At the time of granting permission for purchase/issue of shares/bonds/debentures by/to non-residents, permission for export of the share/bond/debenture certificates is generally granted by Reserve Bank. Permission for export of shares/securities will, therefore, be required to be obtained only in cases where such a permission has not been given.
Reporting of investment inflows
10A.9 Reserve Bank has granted general permission under Sections 19(1)(d), 19(1)(a) and 29(1)(b) of the Foreign Exchange Regulation Act, 1973 to Indian companies for issue and exports of shares/securities to non-resident investors, and to non-resident investor to acquire shares/securities of Indian companies under various non-resident direct investment schemes.
In terms of Reserve Bank Notification Nos.FERA 188 and 189/RB-98 dated 11th November 1998 it is obligatory on the part of Indian companies seeking non-resident investment to file a report containing the following particulars with the Regional Office of Reserve Bank not later than 30 days from the date of receipt of remittance.
(a) Name of the foreign investor:
(b) Country of residents or incorporation of the foreign investor;
(c) Date of receipt of remittance and its rupee equivalent;
(d) Name and address of the authorised dealer in India through whom the remittance is received;
(e) Number and date of SIA/FIPB approval in respect of which remittance is received. This requirement is in addition to the submission of the prescribed declaration in form FC(RBI)/ISD(R)/ISD, as the case may be, alongwith the documents, within 30 days form the date of issue of shares.
