MANU/RFEM/0012/2000

Department / Board :RBI-Exchange Control Department

Notification No :FEMA 20/2000

Date : 03.05.2000

Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000

In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 ( 42 of 1999), the Reserve Bank makes the following regulations to prohibit, restrict or regulate, transfer or issue security by a person resident outside India, namely:

1. Short title and commencement :-

(1) These Regulations may be called the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000.

(2) They shall come into effect on the 1st day of June, 2000 .

2. Definitions :-

In these Regulations, unless the context requires otherwise, -

(i) 'Act' means the Foreign Exchange Management Act,1999 (42 of 1999);

(ii) 'Capital' means equity shares, preference shares, convertible preference shares, and convertible debentures;

(iii) 'registered Foreign Institutional Investor (FII)' means the foreign institutional investor registered with SEBI;

(iv) 'Government approval' means approval from the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Government of India or as the case may be , Foreign Investment Promotion Board (FIPB) of the Government of India,

(v) 'Indian company' means a company incorporated in India;

(vi) 'Investment on repatriation basis' means an investment the sale proceeds of which are, net of taxes, eligible to be repatriated out of India, and the expression 'Investment on non-repatriation basis', shall be construed accordingly;